Foreign Direct Investment in India

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Single Policy Platform For FDI

Union Commerce and Industry Minister Anand
Sharma on March 31, 2010 released the final docu-
ment of FDI Policy Framework that would now
comprise the single document on FDI policy and
mark the inception of a whole new chapter on FDI
policy.
Mr. Sharma said the current exercise had been ini-
tiated with the aim of integration of all prior regu-
lations on FDI, contained in Foreign Exchange
Management Act (FEMA), RBI circulars, and vari-
ous Press Notes into one consolidated document,
so as to reflect the current regulatory framework.
Having a single policy platform would also ease
the regulatory burden for Government. The inten-
tion of this exercise is not to make changes in the
extant guidelines, but to deal with them compre-
hensively.
Limit in LLP firms
The government said it was considering allowing
FDI in limited liability partnership (LLP) firms and
also to clearly define whether shares and bonds
issued to overseas investors could be treated as for-
eign direct investment.
The government may also do away with Schedule
IV of the FEMA that deals with sale and purchase
of shares and debentures by NRIs and overseas
corporate bodies on non-repatriable basis, Mr.
Sharma said.
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“There are many issues related with FDI policies
that are currently under discussion in the govern-
ment,” he said after releasing a compendium. LLP,
the fast emerging form of business structure, is a
hybrid of companies and partnership firms, which
allows unlimited number of partners in an entity
but their liability is restricted to the extent of the
stake held by them.
FDI Inflows Touch
US $ 1.72 Billion During
February 2010
The Minister said that such consolidation would
ensure all information on FDI policy is available at
one place, which is expected to lead to: simplifica-
tion of the policy; greater clarity of understanding
of foreign investment rules among foreign inves-
tors and sectoral regulators, as also predictability
of policy. “Having a single policy platform would
also ease the regulatory burden for Government.
Updation of this document will be carried out af-
ter every 6 months. This consolidated Press Note
will be superseded by a Press Note to be issued on
September 30, 2010, ensure that the framework
document on FDI policy is kept updated”, Shri
Sharma said.
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Earlier, the draft document was released on 24
December, 2009 and was open for comments until
the 31st of January, 2010. The response to the draft
document has been excellent. Comments from 60
stakeholder organizations (including various Gov-
ernment Departments, Reserve Bank of India, Law
Firms, consultancy firms, Chambers of Commerce
and private companies) have been received. All
comments, received until date, have been consid-
ered, before preparation of the final document.
Even after receiving the responses, we held an-
other round of discussions on the document with
a number of consultancy firms that had offered
comments on the draft, as also with the Reserve
Bank of India and the Department of Economic
Affairs.
There are a number of issues related to FDI policy
that are currently under discussion in the Govern-
ment, such as foreign investment in Limited Li-
ability Partnerships (LLPs), policy on issuance of
partly paid shares/warrants, rescinding Schedule
IV of FEMA, clarifications on issues related to Press
Notes 2, 3 & 4 of 2009 and on Press Note 2 of 2005,
as also certain definitional issues etc. When a de-
cision on these is taken, the Government decision
would be announced and thereafter incorporated
into the Consolidated Press Note subsequently.
Foreign Direct Investment into India is a capital
account transaction under the Foreign Exchange
Management Act (FEMA), 1999. The Government
of India and the Reserve Bank of India (RBI) regu-
late such transactions. The Government comes up
with new regulations or amends/changes the ex-
isting ones, keeping in view the requirements that
may exist at a particular point in time. Various as-
pects of FDI policy are, accordingly, pronounced/
notified through Press Notes issued by DIPP, RBI
circulars, Acts and changes in regulations. DIPP
itself has issued about 177 Press Notes since 1991,
covering various aspects of FDI policy, including
cross border investment, policy liberalisation,
policy rationalization and foreign technology col-
laborations, Industrial Policy etc.
As far as FDI policy is concerned, it had been felt,
through interaction with various investors, coun-
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terpart government organizations and other stake-
holders, that there is a need for further simplifica-
tion and consolidation of the FDI policy frame-
work, so as to make it more comprehensible to all
investors and stakeholders. The Prime Minister,
in his remarks at the World Economic Forum in
December, 2008, had also announced that, “Our
policy will be guided by the desire to make India
even more attractive for Foreign Direct Invest-
ment. We are particularly keen to rationalize and
simplify procedures so as to create an investor
friendly environment”. The present exercise was a
step in the above direction.
FDI Inflows
FDI equity inflows for the month of February, 2010
have been US $ 1.72 billion, which represents an
increase of 15%, in US $ terms, over the inflows
received in February 2009 (which were of the or-
der of US $ 1.49 billion). FDI equity inflows for
current the financial year (i.e. April, 2009 to Feb-
ruary, 2010) have been around US $ 24.68 billion.
These are comparable to the FDI equity inflows
for the comparable period of the previous year,
which were around US $ 25.39 billion.
FDI inflows for almost all months in the current
financial year, from June onwards (excepting Sep-
tember, 2009 and January, 2010) have shown an
increasing trend over the FDI inflows of the same
months in the previous financial year (2008-09).
The pace of inflows, therefore, is stable.
Accordingly, it is likely that the total inflows in
the current financial year (2009-10) are compa-
rable to the total inflows received during the last
financial year (2008-09). This is despite the fact
that the UNCTAD World Investment Report,
2009, had noted a fall of global FDI inflows, from a
historic high of 1.979 billion in 2007 to 1.697 bil-
lion in 2008, a decline of 14%. UNCTAD had sub-
sequently predicted a fall in global FDI investment
flows by 30%, from US $ 1.7 trillion in 2008 to US
$ 1.2 trillion in 2009.
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It is relevant to note that the Organisation for Eco-

nomic Cooperation and Development (OECD), in
its latest report on investment, released in March,
2010, has noted a significant stagnation in the glo-
bal investment activity. It has noted that: The
average monthly Merger &Acquisition (M&A) ac-
tivity in the past 12 months was just under US $
50 billion. The last time monthly M&A activity
fell below US$50 billion was in April 2006. Year-
on-year, global M&A activity is now at its lowest
level since the beginning of the global economic
crisis, at around 35% of the levels reached two years
ago (March, 2007 through February, 2008).

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G20 Summit
Leaders Agree to Cut Deficits by 2013

By: Ram Kumar Pandey

The fourth G20 summit in less than two years has ended at
Toronto on 26-27 June, 2010. The summit ended with glo-
bal leaders evolving a consensus of sorts on several issues of
economic importance. India, which was represented in
strength at the summit, says it is happy with the outcome.
The leaders of the world's most powerful economies pledged
to slash back spiraling debts on Sunday as they sought to
rebalance a global economy knocked off its axis by a finan-
cial crisis.

The heads of the G20, which groups established world powers and the most dynamic emerging players,
vowed to nurture the still shaky recovery with coordinated
measures to spur growth and ensure financial stability.
"I understood that
But observers quickly noted the agreements were not bind- fiscal consolidation
ing and the summit statement was filled with caveats and
obviously needed
exemptions, pushing many of the tougher decisions on to
the next G20 summit in Seoul in November. high priority in
those advanced nations that
The leaders' joint statement, released at the end of two days were experiencing exceptional
of talks in Toronto, warned that "failure to implement con- fiscal stress and in those where
solidation where necessary would undermine confidence and sovereign debt was shaky."
hamper growth."

"Reflecting this balance, advanced economies have committed to fiscal plans that will at least halve deficits
by 2013 and stabilize or reduce government debt-to-GDP ratios by 2016," it promised.

Nevertheless, the group exempted Japan and its huge public deficit from the pledge and noted that mea-
sures should be "tailored to national circumstances."

The statement called for "greater exchange rate flexibility in some emerging markets" but shied away from
specifically fingering China, which is under pressure to allow the yuan to strengthen to ease trade imbal-
ances.

Amid US fears that global growth may once again become overdependent on American consumers, the
G20 called for "efforts to rebalance global demand to help ensure global growth continues on a sustainable
path."
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European leaders- Germany's Chancellor Angela
Merkel, French President Nicolas Sarkozy and
Britain's Prime Minister David Cameron -- came
to the talks calling for fiscal restraint and a new
levy on bank profits.
They made some headway on the former, but will
be forced to go it alone on the banking tax, as coun-
tries like Australia, Canada and India that have
experienced no banking failures rejected the pro-
posal out of hand.
The G8 statement said "We agreed the financial
sector should make a fair and substantial contri-
bution towards paying for any burdens associated
with government interventions." "We recognized
that there are a range of policy approaches to this
end. Some countries are pursuing a financial levy.
Other countries are pursuing different approaches."
Observers said the degree of divergence in the
countries' policies for dealing with the recovery
showed that, now that the initial shock of reces-
sion has passed, national agendas are once more
crowding out G20 cooperation.
Outcome For India
The first point was the civilian nuclear pact with
Canada. Canada is an important supplier of Ura-
nium and nuclear technologies. The pact is actu-
ally going to help take India’s plans on that front
forward. In fact the bilateral that the India prime
minster had with the Canadian prime minster ac-
tually seems to signal a new beginning in the rela-
tionship. Stephen Harper said that the 70s are over
and in fact this is the first visit by an Indian prime
minister after 1973.
There were several other agreements for mining
and other MoUs signed. Another key bilateral was
the India US bilateral, Manmohan Singh meeting
Barack Obama. Much of it was political; no War-
ren Anderson extradition demand was raised there.
The key thing was that India told the US to take
disclosures by Headley; the 26/11 accused more
seriously and wanted the United States to get Pa-
kistan to act more on terror.
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PM asks rich nations to resist protectionism
Making it clear that each country needed to de-
vise its own strategy to weather the deepest global
financial crisis in decades, Indian Prime Minister
Manmohan Singh on Sunday asked rich nations to
resist protectionism.
Stating that the India was better placed in han-
dling the situation with an average growth of 7
per cent in the past two fiscals, the prime minister
said emerging economies must also rely less on
exports and push domestic demand.
As the leaders of the Group of 20 advanced and
emerging economies listened in attention, the
Oxford-educated economist-prime minister said
India on its part will go for medium-term fiscal
consolidation and halve its fiscal deficit by 2013-
14.
Manmohan Singh said he understood that fiscal
consolidation obviously needed high priority in
those advanced nations that were experiencing
exceptional fiscal stress and in those where sover-
eign debt was shaky.
"But other advanced countries should opt for a
much more caliberated exit from the stimulus. We
should adopt a carefully differentiated approach,
reflecting the circumstances of individual coun-
tries," the prime minister added.
China sets strongest yuan rate in years after G20
pressure:
China set the strongest yuan exchange rate
in years after Beijing came under renewed pres-
sure at the Group of 20 summit to let the currency
appreciate.
The People's Bank of China said it set the
central parity rate -- the centre point of the
currency's allowed trading band -- at 6.7890 to the
dollar.
It was the strongest level policymakers have
set since China unpegged the currency in July 2005
and moved to a tightly managed floating exchange
rate.
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China had effectively pegged the yuan at about
6.8 to the dollar for the past two years to prop up
exporters during the global financial crisis. Critics
say the policy gives Chinese producers an unfair
advantage.
Manmohan meets Obama at G20 summit:
Prime Minister Manmohan Singh and US Presi-
dent Barack Obama held their second substantive
dialogue in two months, during which they are
understood to have discussed terrorism, global
economy and other issues of mutual concern.
Singh and Obama met on the sidelines of the G20
Summit and are believed to have discussed the situ-
ation in the region.
This was the the first meeting between the two
leaders after they met and reviewed bilateral ties
on the sidelines of the Nuclear Security Summit in
Washington in April.
During the meeting, the two leaders are also un-
derstood to have discussed about the global eco-
nomic recovery and the G20 Summit. At the Sum-
mit, India and the US had cautioned against wind-
ing up of the government funding.
Obama said the two countries would continue to
see how businesses of both countries can get to
work together and then generating recommenda-
tions to "each of us in terms of how we can im-
prove ties between the United States and India."
What is the G-20
The Group of Twenty (G-20) Finance Ministers and
Central Bank Governors was established in 1999
to bring together systemically important industri-
alized and developing economies to discuss key is-
sues in the global economy. The inaugural meet-
ing of the G-20 took place in Berlin, on December
15-16, 1999, hosted by German and Canadian fi-
nance ministers.
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Mandate
The G-20 is the premier forum for our interna-
tional economic development that promotes open
and constructive discussion between industrial and
emerging-market countries on key issues related
to global economic stability. By contributing to the
strengthening of the international financial archi-
tecture and providing opportunities for dialogue
on national policies, international co-operation, and
international financial institutions, the G-20 helps
to support growth and development across the
globe.
Origins
The G-20 was created as a response both to the
financial crises of the late 1990s and to a growing
recognition that key emerging-market countries
were not adequately included in the core of global
economic discussion and governance. Prior to the
G-20 creation, similar groupings to promote dia-
logue and analysis had been established at the ini-
tiative of the G-7.
The G-22 met at Washington D.C. in April and
October 1998. Its aim was to involve non-G-7
countries in the resolution of global aspects of the
financial crisis then affecting emerging-market
countries.
Two subsequent meetings comprising a larger
group of participants (G-33) held in March and
April 1999 discussed reforms of the global economy
and the international financial system.
The proposals made by the G-22 and the G-33 to
reduce the world economy's susceptibility to cri-
ses showed the potential benefits of a regular in-
ternational consultative forum embracing the
emerging-market countries. Such a regular dia-
logue with a constant set of partners was institu-
tionalized by the creation of the G-20 in 1999.
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Membership
The G-20 is made up of the finance ministers
and central bank governors of 19 countries:
» Argentina » Japan
» Australia » Mexico
» Brazil » Russia
» Canada » Saudi Arabia
» China » South Africa
» France » Republic of Korea
» Germany » Turkey
» India » United Kingdom
» Indonesia » United States of America
» Italy
The European Union, who is represented by the
rotating Council presidency and the European Cen-
tral Bank, is the 20th member of the G-20. To en-
sure global economic fora and institutions work
together, the Managing Director of the Interna-
tional Monetary Fund (IMF) and the President of
the World Bank, plus the chairs of the Interna-
tional Monetary and Financial Committee and
Development Committee of the IMF and World
Bank, also participate in G-20 meetings on an ex-
officio basis.
The G-20 thus brings together important indus-
trial and emerging-market countries from all re-
gions of the world. Together, member countries
represent around 90 per cent of global gross na-
tional product, 80 per cent of world trade (includ-
ing EU intra-trade) as well as two-thirds of the
world's population. The G-20's economic weight
and broad membership gives it a high degree of
legitimacy and influence over the management of
the global economy and financial system.
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Achievements
The G-20 has progressed a range of issues since
1999, including agreement about policies for
growth, reducing abuse of the financial system,
dealing with financial crises and combating ter-
rorist financing. The G-20 also aims to foster the
adoption of internationally recognized standards
through the example set by its members in areas
such as the transparency of fiscal policy and com-
bating money laundering and the financing of ter-
rorism. In 2004, G-20 countries committed to new
higher standards of transparency and exchange of
information on tax matters. This aims to combat
abuses of the financial system and illicit activities
including tax evasion. The G-20 has also aimed to
develop a common view among members on is-
sues related to further development of the global
economic and financial system.
To tackle the financial and economic crisis that
spread across the globe in 2008, the G-20 mem-
bers were called upon to further strengthen inter-
national cooperation. Since then, the concerted and
decisive actions of the G-20 helped the world deal
effectively with the current financial and economic
crisis. The G-20 has already delivered a number of
significant and concrete outcomes. For examples,
it committed to implement the unprecedented and
most coordinated expansionary macroeconomic
policies, including the fiscal expansion of US$5 tril-
lion and the unconventional monetary policy in-
struments; significantly enhance the financial regu-
lations, notably by the establishment of the Finan-
cial Stability Board(FSB); and substantially
strengthen the International Financial
Institutions(IFIs), including the expansion of re-
sources and the improvement of precautionary
lending facilities of the IFIs.
Reflecting on these achievements and recognizing
that more needs to be done to ensure a strong, sus-
tained and balanced global recovery, the G-20
Leaders at Pittsburgh Summit designated the G-
20 as the premier forum for international economic
cooperation.
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cess is well integrated with the activities of the

Chair
Unlike international institutions such as the Or-
ganization for Economic Co-operation and Devel-
opment (OECD), IMF or World Bank, the G-20
(like the G-7) has no permanent staff of its own.
The G-20 chair rotates between members, and is
selected from a different regional grouping of coun-
tries each year. In 2010 the G-20 chair is the Re-
public of Korea, and in 2011 it will be France. The
chair is part of a revolving three-member man-
agement Troika of past, present and future chairs.
The incumbent chair establishes a temporary sec-
retariat for the duration of its term, which coordi-
nates the group's work and organizes its meetings.
The role of the Troika is to ensure continuity in
the G-20's work and management across host years.
Meetings and activities
It is normal practice for the G-20 finance minis-
ters and central bank governors to meet once a year.
The last meeting of ministers and governors was
held in St. Andrews, UK on 6-7 November 2009.
The ministers' and governors' meeting is usually
preceded by two deputies' meetings and extensive
technical work. This technical work takes the form
of workshops, reports and case studies on specific
subjects, that aim to provide ministers and gover-
nors with contemporary analysis and insights, to
better inform their consideration of policy chal-
lenges and options.
Bretton Woods Institutions. The G-20 also works
with, and encourages, other international groups
and organizations, such as the Financial Stability
Board and the Basel Committee on Banking Su-
pervision, in progressing international and domes-
tic economic policy reforms. In addition, experts
from private-sector institutions and non-govern-
ment organisations are invited to G-20 meetings
on an ad hoc basis in order to exploit synergies in
analyzing selected topics and avoid overlap.
External Communication
The country currently chairing the G-20 posts de-
tails of the group's meetings and work program on
a dedicated website. Although participation in the
meetings is reserved for members, the public is
informed about what was discussed and agreed
immediately after the meeting of ministers and
governors has ended. After each meeting of min-
isters and governors, the G-20 publishes a
communiqué which records the agreements
reached and measures outlined. Material on the
forward work program is also made public.
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complex issues among G-20 members can add po-
litical momentum to decision-making in other bod-
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Bank, the Managing Director of the IMF and the
chairs of the International Monetary and Finan-
cial Committee and the Development Committee
in the G-20 meetings ensures that the G-20 pro-

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 UPSCPORTAL Current Affairs : http://upscportal.com/civilservices/current-affairs
GANGA, THE MOTHER IN A CURSE
The World Wildlife Fund in March
listed the Ganges among the
world’s 10 most endangered
rivers. In India, the river provides
more than 500 million people with
water for drinking and farming.
More than 100 cities and
countless villages are situated
along the 1,568-mile river, which
stretches from the foothills of the
Himalayas to the Bay of Bengal,
and few of them have sewage
treatment plants. But recent
reports by scientists say the
Ganges is under greater threat
from water pollution & even
greater from global warming.
According to a U.N. climate
report, the Himalayan glaciers
that are the sources of the Ganges
could disappear by 2030 as
temperatures rise. The shrinking
glaciers also threaten Asia’s supply
of fresh water. The immediate
effect of glacier recession is a
short-lived surplus of water. But
eventually the supply runs out,
and experts predict that the
Ganges eventually will become a
seasonal river, largely dependent
on monsoon rains.
Arrangement at the Central
Level
The river cleaning program was
started with Ganga Action
Plan(GAP) in 1985 under the
aegis of GPD established under
the Ministry of Environment &
Forest. A CGA under the
chairmanship of the PM was
constituted to finalise the policy
framework and to oversee the
implementation of GAP. The
Chief Ministers of the concerned
States, Union Ministers and
Secretaries of the concerned
Central Ministries and Experts
were its members. The GAP was
later extended to GAP II in 1993
and was broad-based in the form
of NRCP in 1995. The GAP II
was merged with NRCP in
December 1996. Since then a
single scheme of NRCP is under
implementation as a Centrally
Sponsored Scheme. The CGA
was renamed as National River
Conservation Authority (NRCA)
with a larger mandate to cover all
the programmes supported by the
NRCD.
National Ganga River Basin
Authority
To face this challenge the Central
Government by a notification on
20th February,2009, has set up
the ‘National Ganga River Basin
Authority’ (NGRBA) as an
empowered planning, financing,
monitoring and coordinating
authority for the Ganga River, to
ensure effective abatement of
pollution and conservation of the
river Ganga by adopting a holistic
approach with the river basin as
the unit of planning .The Authority
will perform its function under the
Chairmanship of the Prime
WWW.UPSC.PORTAL.COM
 UPSCPORTAL Current Affairs : http://upscportal.com/civilservices/current-affairs
Minister. It has as its members,
the Union Ministers concerned,
the Chief Ministers of the States
through which Ganga flows viz.,
Uttarakhand, Uttar Pradesh,
Bihar, Jharkhand and West
Bengal, among others.
The Authority may co-opt one or
more Chief Ministers from any of
the States having major tributaries
of the river Ganga. The objective
of the NGRBA is to ensure
effective abatement of pollution
and conservation of the river
Ganga by adopting a river basin
approach for comprehensive
planning and management; and to
maintain minimum ecological flows
in the river Ganga with the aim of
ensuring water quality and
environmentally sustainable
development.
Key Functions of the
NGRBA
The NGRBA would be
responsible for addressing the
problem of pollution in Ganga in
a bolistic and comprehensive
manner. This will include water
quality, minimum ecological flows,
sustainable access and other issues
relevant to river ecology and
management. The NGRBA will
not only be regulatory body but
will also have developmental role
in terms of planning & monitoring
of the river conservation activities
and ensuring that necessary
resources are available. The
NGRBA would work for
maintaining the water quality of
the river Ganga upto the
acceptable standards. The
pollution abatement activities will
be taken up through the existing
implementation mechanisms in the
States and also through Special
WWW.UPSC.PORTAL.COM
Purpose Vehicles (SPVs) at the
pollution hotspots. The NGRBA
will ensure minimum ecological
flow in the Ganga by regulating
water abstraction and by
promoting water storage projects.
The NGRBA will plan and monitor
programmes for cleaning of Ganga
and its tributaries. To begin with
, it will concentrate on Gangamain
stem. The NGRBA would draw
upon professional expertise within
and outside the Government for
advice on techno-economic
issues. The technical and
administrative support to
NGRBA shall be provided by the
Ministry of Environment &
Forests.
Role of State Government
under NGRBA
The State government will be at
the forefront. Implementation will
be at the level of State
Government/ ULBs. The States
may take up steps for
comprehensive management of
the river in the State through their
respective State River
Conservation Authorities. The
State Government/ ULBs are
expected to generate resources
through taxes, levies, cess, user
charges, etc., for abatement of
pollution in the rivers and for
proper O&M of the assets
created. Funds thus raised may be
utilized for infrastructure
development including sewage
works. During the finalization of
the respective State Plans, the
States should make adequate
provisions in their budgets for
meeting O&M expenditure.
Compliance of the environmental
norms by industries discharging
wastewater directly into the river
is under the purview of the State
Pollution Control Boards. The
Boards will need to be
strengthened for better
enforcement and surveillance of
polluting industries located on the
banks of the rivers. The public
funds for the capital and recurring
costs may not be sufficient to
meet the demand. The States will
therefore have to introduce
policies which may attract private
sector investments, including from
the financial institutions.
Salient Features of the New
Approach
River Basin will be the unit of
planning and management. This is
an internationally accepted
strategy for integrated
management of rivers.
Accordingly, a new institutional
mechanism in the form of National
Ganga River Basin Authority
(NGRBA) will spearhead river
conservation efforts at the
national level. Implementation will
be by the State Agencies and
Urban Local Bodies. The minimum
ecological flows for the entire
Ganga will be determined through
modeling exercises. NGRBA will
take appropriate measures in
cooperation with the States to
regulate water abstraction for
maintaining minimum ecological
flows in the river. Attention
would also be paid to the
restoration of living parts of the
river ecosystem for its holistic
treatment to enable conservation
of species like dolphin , turtles,
fishes and other native and
endangered species in the river.
 UPSCPORTAL Current Affairs : http://upscportal.com/civilservices/current-affairs
Measures Taken
To restore the ecological health
and biological wealth of the river,
projects on biomonitoring and bio-
conservation by having indicator
species approach were initiated in
the Himalayan segment, mahaseer
followed by otters and crocodiles
from Hardwar to Kanpur, major
carps from Kanpur to Varanasi
and dolphins in the stretch of
Bihar have been identified as
indicator species for these
studies. Scientists of Hemvati
Nandan Bahuguna University,
Garhwal, Jivaji University,
Gwalior, Central Inland Capture
Fisheries research Institute,
Barrackpur and Patna University
are involved in carrying out the
bio-monitoring and bio-
conservation studies.
In order to evaluate the results of
implementation of the pollution
abatement schemes under GAP,
water quality monitoring in the
state of UP, Bihar and WB is
being carried out regularly at 27
monitoring stations with the help
of reputed research institutes and
universities. The selection of
monitoring stations and the results
are reviewed by experts from time
to time. Amendments in WQM
are provided by incorporating
need based modifications.
Impact so far
Under GAP I, only about 35% of
the total sewage generated
presently in towns along the river
has been tackled. On the other
hand, the facilities created to
tackle the targeted pollution load
are not being maintained properly
in States like UP and Bihar.
Therefore, the impact of the
completed works is not fully
visible. However, with the
implementation of GAP, the
water quality of Ganga has shown
improvement over the pre-GAP
period quality in terms of both
BOD & DO, two important
parameters to assess the river
water quality. Despite the
problems of O&M in UP and
Bihar, the improvement in river
water quality can be attributed to
diversion of large quantities of
sewage in towns like Kanpur,
Allahabad and Varanasi for
irrigating the farmlands. Although
the river water quality along
Kanpur and Varanasi has
improved significantly, it still does
not meet the prescribed standard
of BOD of 3 mg/l. This is mainly
because:
8 Only 160 out of 425 mld at
Kanpur and about 100 out of
160 mld of sewage at
Varanasi has been taken up
for interception and diversion
under GAP I.
8 The river stretch from
Farrukhabad to Varanasi in
general and Kanpur in
particular is critical in terms
of the availability of the
desired minimum flow for
dilution purpose. The quality
of river water quality
monitoring leaves much to
be desired. There is lack of
transparency and professio-
nalism in this effort.
Dolphin Conservation
Dolphin is considered to be one
of the major bio-indicators of the
ecological health of Ganga.
Accordingly it has been declared
as a national aquatic animal. A
working group for preparing on
action plan for Dolphin
conservation has been
constituted. Resultantly, as we all
know that we Indians treat river
Ganges as Goddess & mother,
we have to make sure that
government take all the corrective
& preventive measures to make
Ganga clean and pure, and for this
we all should also make valiant
efforts as a sincere citizen,
otherwise our next generation
seldom get a chance to see the
river Ganga and they will get to
know about this only in stories
and text books.
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Competitiveness
Report
I
ndia has slipped by two places to Hanouz, senior economist and di- of social sector areas such as ed-
51st in the World Economic rector of the WEF, who is also the uca:on, health and infrastruc-
Forum's global compe::veness
rankings, while rival China has
managed to improve its standing
to 29th. As per the WEF's Global
Compe::veness Report 2010-11,
released on Sept 9, 2010 switzer-
land is No. 1 in the world in terms
of its ability to provide the most
compe::ve environment on sev-
eral fronts.
Sweden, another technology
powerhouse in Europe, ranks sec-
ond, followed by Singapore and
the United States, which both fell
by two posi:ons from their rank-
ing last year. The African na:on of
Chad figures at the bo;om of the
list of 139 countries.
The global compe::veness
rankings are viewed as a barome-
ter of the business climate in 139
countries and mirrors the assess-
ments of leading businessmen on
a range of poli:cal, social, and
economic parameters.
Though Switzerland has
"[state-supported] monopolies in
key sectors, it maintains overall co-author of the report. ture.
economic stability and largely India has been pushed down Though India has performed
open trade and investment poli- to 51st posi:on from 49th due to well in complex financial sector
cies," said Margareta Dryeniek its poor performance in a range areas, a;aining the 17th rank

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globally in terms of its financial
markets, 44th in business sophis-
:ca:on and 39th in innova:on, it
has failed to improve the basic
drivers of compe::veness, the
report said.
Life expectancy is 10 years
shorter in India as compared to
China and Brazil. Despite high
economic growth, India con:n-
ues to be plagued by budget
deficits, high public debt and high
infla:on. In contrast, China has
over USD 2 trillion in forex re-
serves and a sound macro-eco-
nomic environment.
The WEF, which is a non-gov-
ernmental organisa:on, is largely
known for its annual Davos show
of captains of industry and busi-
ness and poli:cal leaders. In the
face of a growing economic crisis
in the western world, the WEF
has increasingly promoted "com-
passionate capitalism" as an eco-
nomic model, analysts said.
Global Competitiveness
Report
The Global Compe::veness Re-
port is a yearly report published

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by the World Economic Forum.
The first report was released in
1979. The 2009-2010 report cov-
ers 133 major and emerging
economies, down from 134 con-
sidered in the 2008-2009 report
as Moldova was excluded due to
lack of survey data.
Switzerland leads the ranking
as the most compe::ve econ-
omy in the world, as the United
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States, which ranked first for sev-
eral years, fell to fourth place due
to the consequences of the finan-
cial crisis of 2007–2010 and its
macroeconomic stability. China
con:nue its rela:ve rise in the
rankings reaching 27th.
The report "assesses the abil-
ity of countries to provide high
levels of prosperity to their ci:-
zens. This in turn depends on
Hot Topics
how produc:vely a country uses
available resources. Therefore,
the Global Compe::veness Index
measures the set of ins:tu:ons,
policies, and factors that set the
sustainable current and medium-
term levels of economic prosper-
ity."
Description
Somewhat similar annual reports
are the Ease of Doing Business
Index and the Indices of Eco-
nomic Freedom. They also look at
factors that affect economic
growth, but not as many as the
Global Compe::veness Report.
One part of the report is the
Execu:ve Opinion Survey which
is a survey of a representa:ve
sample of business leaders in
their respec:ve countries. Re-
spondent numbers have in-
creased every year and is
currently just over 11,000 in 125
countries.
The report ranks the world's
na:ons according to the Global
Compe::veness Index. The re-
port states that it is based on the
latest theore:cal and empirical
research. It is made up of over 90
variables, of which two thirds
come from the Execu:ve Opinion
Survey, and one third comes from
publicly available sources such as
the United Na:ons. The variables
are organized into nine pillars,
with each pillar represen:ng an
area considered as an important
determinant of compe::veness.
The report notes that as a na-
:on develops, wages tend to in-
crease, and that in order to
sustain this higher income, labor
produc:vity must improve in
order for the na:on to be com-
pe::ve. In addi:on, what creates
produc:vity in Sweden is neces-
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sarily different from what drives
it in Ghana. Thus, the GCI sepa-
rates countries into three specific
stages: factor-driven, efficiency-
driven, and innova:on-driven,
the efficiency-driven stage of de-
velopment, when they must
begin to develop more efficient
produc:on processes and in-
crease product quality. At this
:on of the GCI, pillars are given
different weights depending on
the per capita income of the na-
:on. The weights used are the
values that best explain growth in
recent years For example, the so-
phis:ca:on and innova:on fac-
tors contribute 10% to the final
score in factor and efficiency-dri-
ven economies, but 30% in inno-
va:on-driven economies.
Intermediate values are used for
economies in transi:on between
stages.

2010-2011 rankings

The following are the top 30

countries in the 2010-2011 Re-
port.
1. Switzerland 5.63
2. Sweden 5.56
3. Singapore 5.58
4. United States 5.43
5. Germany 5.39
6. Japan 5.37
7. Finland 5.37
each implying a growing degree point, compe::veness becomes 8. Netherlands 5.33
of complexity in the opera:on of increasingly driven by higher edu- 9. Denmark 5.32
the economy. ca:on and training (pillar 5), effi- 10. Canada 5.30
In the factor-driven stage cient markets (pillar 6), and the 11. Hong Kong SAR 5.27
countries compete based on their ability to harness the benefits of 12. United Kingdom 5.25
factor endowments, primarily un- exis:ng technologies (pillar 7). 13. Taiwan 5.21
skilled labor and natural re- Finally, as countries move 14. Norway 5.14
sources. Companies compete on into the innova:on-driven stage, 15. France 5.13
the basis of prices and sell basic they are only able to sustain 16. Australia 5.11
products or commodi:es, with higher wages and the associated 17. Qatar 5.10
their low produc:vity reflected in standard of living if their busi- 18. Austria 5.09
low wages. nesses are able to compete with 19. Belgium 5.07
To maintain compe::veness new and unique products. At this 20. Luxembourg 5.05
at this stage of development, stage, companies must compete 21. Saudi Arabia 4.95
compe::veness hinges mainly by producing new and different 22. South Korea 4.93
on well-func:oning public and goods using the most sophis:- 23. New Zealand 4.92
private ins:tu:ons (pillar 1), ap- cated produc:on processes (pillar 24. Israel 4.91
propriate infrastructure (pillar 2), 8) and through innova:on (pillar 25. United Arab Emirates 4.89
a stable macroeconomic frame- 9). Thus, the impact of each pil- 26. Malaysia 4.88
work (pillar 3), and good health lar on compe::veness varies 27. China 4.84
and primary educa:on (pillar 4). across countries, in func:on of 28. Brunei 4.75
As wages rise with advancing de- their stages of economic develop- 29. Ireland 4.74
velopment, countries move into ment. Therefore, in the calcula- 30. Chile 4.69

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Global
Hunger
Index
2010
Hunger haunts India
India is among 29 countries with
the highest levels of hunger,
stunted children and poorly fed
women, according to the Interna-
6onal Food Policy Research Ins6-
tute (IFPRI)’s “Global Hunger
19
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Index 2010” released on Oct 11,
2010. Despite a strong economy
that was last week predicted to
overtake China’s within three
years by The Economist maga-
zine, India ranked 67th among 85
countries in terms of access to
food.
The report points to wide-
spread hunger in a country that is
Featured Article
By - R.K. Pandey
the world’s largest producer of
milk and edible oils, and the sec-
ond-largest producer of wheat
and sugar.
The country has a high
“hunger score” of 24.1 and ranks
behind all its neighbours, barring
Bangladesh. Values between 20
and 29.9 on the index denote an
“alarming” hunger situa6on.
Globally, the world is
nowhere near mee6ng the target
of the UN’s goal of halving the
propor6on of hungry people.
India also runs the world’s
largest free-meal programme for
school-going children. Yet, the
2010 hunger report reveals that
more than 90 per cent of the
world’s stunted children (whose
height is low for their age) live in
Asian countries, such as India and
Bangladesh, apart from some
Africa countries.
The highest regional hunger
indices — sugges6ng the worst
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Featured Article
performers —are almost the
same for South Asian countries,
such as India, and Sub-Saharan
African na6ons, such as Congo.
India is among countries with
“hunger levels considerably
higher that their gross na6onal
income per capita would sug-
gest”. “It’s kind of ironic,” Ashok
Gula6, Asia director of the Wash-
ington-based IFPRI said.
The IFPRI hunger index —
complied in partnership with Ger-
man NGO Welthungerhilfe, and
Concern Worldwide —ranks
countries on three equally
weighted indicators: the propor-
6on of undernourished, the pro-
por6on of underweight children
under five, and the child mortal-
ity rate.
The UN Food and Agriculture
Organisa6on (FAO) defines
hunger as the consump6on of
fewer than 1,800 kilocalories a
day — the minimum required to
live a healthy and produc6ve life.
What is Global Hunger
Index
The Global Hunger Index (GHI) is
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a mul6dimensional sta6s6cal tool
used to describe the state of
countries’ hunger situa6on. The
GHI measures progress and fail-
ures in the global fight against
hunger. The GHI is updated once
a year.
The Index was adopted and
further developed by the Interna-
6onal Food Policy Research Ins6-
tute (IFPRI), and was first
published in 2006 with the
Welthungerhilfe, a German non-
profit organiza6on (NGO). Since
2007, the Irish NGO Concern
Worldwide joined the group as
co-publisher.
The 2009 GHI was calculated
for 121 developing countries and
countries in transi6on, 84 of
which were ranked. Every year,
the GHI report focuses on a main
topic: in 2009 the Index measures
the connec6on between hunger
and gender equality. In addi6on,
the impact of the financial crisis
on the hunger situa6on was ana-
lyzed. In addi6onal to the yearly
GHI, the Hunger Index for the
States of India (ISHI) was pub-
lished in 2008 and the Sub-Na-
6onal Hunger Index for Ethiopia
was published in 2009.
Calculation of the Index
The Index ranks countries on a
100 point scale, with 0 being the
best score ("no hunger") and 100
being the worst, though neither
of these extremes is achieved in
prac6ce. The higher the score,
the worse the food situa6on of a
country. Values less than 4.9 re-
flect "low hunger", values be-
tween 5 and 9.9 reflect
"moderate hunger", values be-
tween 10 and 19.9 indicate a "se-
rious", values between 20 and
29.9 are "alarming", and values
exceeding 30 are "extremely
alarming" hunger problem.
The GHI combines three
equally weighted indicators: 1)
the propor6on of the undernour-
ished as a percentage of the pop-
ula6on; 2) the prevalence of
underweight children under the
age of five; and 3) the mortality
rate of children under the age of
five.
The data used for the 2009
GHI are for the period from 2002
to 2007 – the most recent avail-
able global data for the three
components of the GHI. The data
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on the propor6on of undernour-
ished come from the Food and
Agriculture Organiza6on of the
UN (FAO) and are for 2003-2005.
Data on underweight of children
under 5 are based on data col-
lected by the World Health Or-
ganiza6on (WHO), UNICEF and
MEASURE DHS for the latest year
in the period 2002–07 for which
data are available and data on
child mortality are for 2007 from
UNICEF. The 2009 GHI and the re-
calculated base value of 1990 GHI
are not directly comparable to
previously calculated GHI values.
Global and regional trends
The 2009 GHI report shows how
the hunger situa6on has devel-
oped since 1990 at global, re-
gional, and na6onal levels.
Globally, the GHI fell nearly one
forth from 20 to 15.2 points. Re-
gardless of this posi6ve trend, the
global fight against hunger is
stagna6ng and not reaching its
goals fast enough. The global av-
erages hide drama6c differences
among regions and countries. 29
countries s6ll have an alarming
(20-29.9) or extremely alarming
(≥ 30) hunger situa6on. The 2009
GHI had fallen by 13% in Sub-Sa-
haran Africa compared with the
1990 GHI, by about 25% in South
Asia, and by 32% in the Near East
and North Africa. Progress in
Southeast Asia and La6n America
was especially great, with the GHI
decreasing by over 40%.
Sub-Saharan Africa and South
Asia share the highest regional
GHI scores (22.1 and 23.0 respec-
6vely), but food insecurity in the
two regions stems from different
reasons: In South Asia, the major
problem is a high prevalence of
underweight children under five,
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which is a result of lower nutri-
6on and educa6onal status of
women. In contrast, the high GHI
in Sub-Saharan Africa is due to
high child mortality rates and the
high propor6on of people who
cannot meet their calorie re-
quirements.
Hunger and Conflict
The report shows that conflict
and poli6cal instability and eco-
nomic collapse have increased
hunger in a number of Sub-Saha-
ran African countries and North
Korea.
Hunger and Gender
Inequality
A comparison of the GHI 2009 re-
sults with the respec6ve rankings
in the World Economic Forum’s
2008 Global Gender Gap Index
shows that hunger and gender in-
equality—par6cularly inequali-
6es in educa6on and
health—o'en go hand in hand.
Hunger in India: 'The real cause is
lack of poli6cal will'
The poker is glowing red hot
in the flames of the burning
wood. Suklal Hembrom holds a
leaf against his stomach and war-
ily eyes the
older man sit-
6ng on the
other side of
the fire. Sud-
denly Thakur
Das takes hold
of the poker
and lunges to-
wards the
boy's stomach.
Ev e r y o n e
in the village
knows what
Featured Article
should happen next. The child
will scream loudly as the flesh be-
gins to blister. Held down, he will
writhe in agony. Again and again,
the poker will jab at his belly. The
more the child screams, the hap-
pier everyone will be, because
the villagers of Mirgitand in
India's Jharkhand state believe
the only way they can "cure" the
distended stomachs of their fam-
ished children is by branding
them with pokers.
Das sees nothing wrong with the
procedure. Nor does anyone in
the village – most have scars of
their own. Even though some
children have died, the villagers
con6nue because the alterna6ve
– providing enough nutri6ous
food to sustain their children or
paying for medical treatment – is
simply not an op6on. In common
with millions of others in the
world's 11th largest economy,
they face a daily ba7le to put
even the most basic meal on the
table.
A report out today warns that
even in a fast-growing economy
like India, failure to invest in agri-
culture and support small farms
has le' nearly half the country's
children malnourished, with one
fi'h of the one billion plus popu-
la6on going hungry.
Ac6onAid, which published
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Featured Article
the report ahead of next week's
summit in New York to discuss
progress on the millennium de-
velopment goals, says hunger is
cos6ng the world's poorest na-
6ons £290bn a year – more than
10 6mes the es6mated amount
needed to meet the goal of halv-
ing global hunger by 2015.
India now has worse rates of
malnutri6on than sub-Saharan
Africa: 43.5% of children under
five are underweight and India
ranks below Sudan and Zim-
babwe in the Global Hunger
Index. Even without last year's
disastrous monsoon and the en-
suing drought and crop failures,
hunger was on the increase.
The government has prom-
ised a new food security bill to
provide cheap food for the poor,
but progress has been slow. The
reality is that a country desperate
to take its place at the world's top
table is unwilling to commit to
feeding its own popula6on.
Last month the country's
supreme court cas6gated the
government for allowing 67,000
tonnes of badly stored grain to
rot – enough to feed 190,000
people for a month – and or-
dered it to distribute 17.8m
tonnes in imminent danger of
ro8ng.
India's prime minister, Man-
mohan Singh, protested, saying
the court had crossed the line
into policy-making and warning
that distribu6ng free food to the
es6mated 37% of the popula6on
living below the poverty line de-
stroyed any incen6ves for farm-
ers to produce. The court stood
firm. It was an order, not a sug-
ges6on, the judges said.
According to Ac6onAid,
global hunger in 2009 was at the
same level as in 1990. The charity
urged developed countries to
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make good on £14bn pledge to Molilal Kisku li's his shirt. He is
fight hunger, announced at last five, with a large, distended belly.
year's G8 summit in Italy. There are dark circles on the skin
"On the eve of the most im- from where the poker was ap-
portant development summit for plied. There is not a child un-
five years, a billion people will be scarred.
going to bed hungry," said Manoranjan Mahta, 44, sits
Meredith Alexander, the charity's on a log, watching. He works for
policy head. "Despite promises to the post office, he says: he is an
the contrary, one-sixth of human- educated man. Yet he submi7ed
ity doesn't get enough to eat. But his son, Hemanth, to the process.
we grow enough food to feed "My son had a protruding
every man, woman and child on belly. We went to many doctors,
the planet. The real cause of but they didn't cure it," he says.
hunger isn't lack of food, it is lack
of poli6cal will."
The UN Food and Agricultural
Organisa6on announced today
that the number of hungry peo-
ple worldwide has dropped by 98
million to 925 million in the past
year. However, Oxfam warned
the decline is largely down to
luck, such as two years of
favourable weather pa7erns,
rather than ac6on from world
leaders.
Abandoned to its fate
Mirgitand lies in hills about
195km east of the state capital
Ranchi, at the end of a stony, ver-
6ginous track. It is part of India,
but at the same 6me not part of
it: abandoned to its fate by the
state, in the hands of Maoist Nax-
alite guerillas who hold the secu-
rity forces at bay with apparent
ease.
Das squats next to the fire,
poking it with a s6ck. The poker
lies cooling on the ground. This
6me he did not make contact,
warned in advance that the child
must not be harmed for the
demonstra6on, though he came
worryingly close.
Instead, the villagers instruct
the children to show their scars.
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"In this village when a child has a
big pot belly we put a piece of ba-
nana leaf on the skin and then we
put burning charcoal or a burning
rod on the leaf. If the child is
writhing in pain, the no6on is
that the germs are dying."
But it was Hemanth who suc-
cumbed. The wound became in-
fected and he died on 21
December 2007. He was seven
years old.
Struggle for survival
India may be thriving economi-
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cally but it is s6ll dogged by
poverty and hunger.
A recent Oxford University re-
port found 410 million people
were living in poverty in just eight
Indian states – more than in the
26 countries of sub-Saharan
Africa.
Last year's Global Hunger
Index placed India in the "alarm-
ing" category, ranked 65 out of 84
countries, below even North
Korea. Across the country, hun-
dreds of millions are malnour-
Featured Article
ished. A study released in May
warned that 66% of children
under the age of six in Delhi's
slums were malnourished. The
report noted that the most vul-
nerable sec6ons of society were
not covered under government
schemes which were supposed to
support them.
In Jharkhand state, a study of
20 villages carried out last year
recorded 13 deaths from starva-
6on and 1,000 families suffering
from chronic hunger syndrome. It
is es6mated that each year,
nearly 50,000 children in the
state die before their first birth-
day. It does not help that Jhark-
hand's doctors are among the
most poorly paid in India, earning
barely half what their contempo-
raries in Delhi might earn. This
may explain why 2,200 of the
2,468 doctors recruited by the
state five years ago have moved
on. The state is said to need more
than 800 primary health centres,
although it has just 330.
The situa6on in the central
Indian state of Madhya Pradesh
is, if anything, worse than in
Jharkhand. More than half a mil-
lion children below the age of five
have died in the past five years
and 60% of its children are cate-
gorised as malnourished. The
government es6mates that 37%
of the popula6on subsist on less
than the official poverty line of
327 rupees (£4.57) per month in
rural areas and 570 rupees in
urban areas. In May, television
and newspaper pictures showed
100,000 tonnes of wheat ro8ng
in the open in the state.
And in Ganne, in U7ar
Pradesh, children have resorted
to ea6ng mud. When the reports
began to surface, officials appar-
ently sent some food and told the
villagers to keep quiet.
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GROWTH FOR ALL WITH

SUSTAINABLE USE OF RESOURCES
Today the main challenge in front on the expeditious provision of integration of supply chains and
of international community is to green technologies and financial strengthening of public distribution
sustain and accelerate the process support to developing countries systems. Eradicating poverty is an
of poverty eradication and ensure for productivity enhancement, indispensible requirement for
food and energy security, improved resilience and sustainable development. A major
particularly to developing diversification of production cause aggravating poverty is the
systems. unsustainable pattern of
countries while shifting gradually
to a Green Economy. A green
economy approach to
development holds the potential
to achieve greater convergence
between economic and
environmental objectives.
Agriculture plays a critical role in
determining food, water,
ecological and livelihood security.
Integrating the strategies and
policies for a green economy into
agriculture has to proceed with an
absolute imperative of ensuring
these and not forgetting the Sustainable development and consumption and production.
differentiated needs of subsistence management of agriculture would Poverty eradication remains an
agriculture and market-oriented benefit from sharing of best overriding objective of
crops. practices including farm and non- governments in developing
Also, transitioning to a greener farm development, improved countries, and efforts to build
model of agriculture will depend post-harvest management, green economies should

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 UPSCPORTAL Current Affairs : http://upscportal.com/civilservices/current-affairs
contribute substantially to
realizing that objective.
Integrating green economy
strategies and policies into
poverty eradication, food security
and energy security is an
imperative for sustainable
development.Food security and
access to affordable clean energy
are both crucial to eradicating
poverty and promoting social
development.The issue of energy
security and universal energy
access is intricately linked with
economic development and
growth, and rising energy needs to
meet it.
Energy poverty coexists with
inefficient energy use in much of
the world, which – given
continued heavy dependence on
fossil fuels – has been a major
contributor to greenhouse gas
emissions. Understanding the
flexibility or lack of flexibility of
each country to change this
energy mix and devising
innovative methods to secure
energy security are the need of the
hour without compromising on the
need for high economic growth to
meet the aspirations of the people,
especially in developing countries.
Energy security is a multi-faceted
concept. In the current context,
the primary focus is on poor
people’s securing adequate energy
supplies to raise their living
standards, including through
improved income generation,
health and education. Renewable
energy should be considered as an
integral part of the solution to the
energy needs of the poor, but that
will only be feasible if it is
affordable and technologically
accessible. As affordability is a
function in part of large-scale
deployment and learning, the
strategy to address energy
poverty needs to be linked to a
broader alternative energy
strategy as part of a green
economy.With respect to energy
security, rural energy access
remains seriously deficient in
many developing countries, with
well over a billion people lacking
access to electricity and clean
cooking and heating fuels. At the
same time, even in urban areas,
electricity is often underprovided
and unreliable, especially for urban
poor communities. This
exacerbates poverty and closes
off escape routes by limiting
income generation opportunities
as well as educational
opportunities especially for girls.
What is Green Economy?
A green economy is typically
understood as an economic
system that is compatible with the
natural environment, is
environmentally friendly, is
ecological, and for many groups,
is also socially just. These
attributes are the conditions that
must be imposed on an economy
from the perspective of many
green economy advocates. This
conventional concept of a green
economy may be alternatively
described as “the greening of an
economy”.
Some fundamental criteria for
meeting these conditions have
been established since Rio, such
as using renewable resources
within their regenerative capacity,
making up for the loss of non-
renewable resources by creating
their renewable substitutes,
limiting pollution within the sink
functions of nature, and
maintaining ecosystem stability
and resilience. A Green Economy
is a system of economic activities
related to the production,
distribution and consumption of
goods and services that results in
improved human well-being over
the long term, whilst not exposing
future generations to significant
environmental risks and ecological
scarcities. Conditions for social
justice may include: 1) not
compromising future generations’
capability to meet their needs; 2)
the rights of poor countries and
poor people to development and
the obligations of rich countries
and rich people to changing their
excessive consumption levels; 3)
equal treatment of women in
access to resources and
opportunities; and 4) ensuring
decent labor conditions. A green
economy is one that results in
improved human well-being and
social equity, while significantly
reducing environmental risks and
ecological scarcities.
A green economy is a economy or
economic development model
based on sustainable development
and a knowledge of ecological
economics.Its most distinguishing
feature from prior economic
regimes is direct valuation of
natural capital and ecological
services as having economics value
and a full cost accounting regime
in which costs externalized onto
society via ecosystems are
reliably traced back to, and
accounted for as liabilities of, the
entity that does the harm or
neglects an asset.
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 UPSCPORTAL Current Affairs : http://upscportal.com/civilservices/current-affairs
Green Economy defined by
Karl Burkart is based on six
mai n se ctor s,wh ich are as
follows:
8 Renewable energy (solar,
wind, geothermal, marine
including wave, biogas, and
fuel cell)
8 Green buildings (green
retrofits for energy and
water efficiency, residential
and commercial assessment;
green products and materials,
and LEED construction)
8 Clean transportation
(alternative fuels, public
transit, hybrid and electric
vehicles, carsharing and
carpooling programs)
8 Water management (Water
reclamation, greywater and
rainwater systems, low-
water landscaping, water
purification, stormwater
management)
8 Waste management
(recycling, municipal solid
waste salvage, brownfield
land remediation, Superfund
cleanup, sustainable
packaging)
8 Land management (organic
agriculture, habitat
conservation and
restoration; urban forestry
and parks, reforestation and
afforestation and soil
stabilization)
UNEP Green Economy
Initiative (GEI)
The Green Economy Initiative
launched by the United Nations
Environment Programme in
October 2008 is aimed at seizing
the opportunities this modern
WWW.UPSC.PORTAL.COM
concept of a green economy has
to offer. It seeks to accomplish
two tasks. First, it tries to make
a “beyond-anecdotal” macroe-
conomic case for investing in
sectors that produce environ-
mentally friendly or
environmentally enhancing
products and services (“green
investment”). By a large and not just equitable
“macroeconomic case”, it mainly
refers to the contribution of green
investment to output and job
growth. Second, the initiative tries
to provide guidance on how to
boost pro-poor green investment.
The goal is to encourage and
enable policymakers to support
increased green investment from
both the public and private
sectors.
The UNEP GEI activities include
providing advisory services to
countries interested in greening
their economies; producing
research products, such as The
Green Economy Report, The
Economics of Ecosystems and
Biodiversity (TEEB) series of
reports, and the Green Jobs
Report; and engaging partners to
effectively promote and
implement green economy
strategies.
Concept of Inclusive
Growth
Rapid and sustained poverty
reduction requires inclusive growth
that allows people to contribute
to and benefit from economic
growth.Inclusive Growth refers
both to the pace and pattern of
growth, which are considered
interlinked, and therefore in need
to be addressed together.
Inclusive growth by its very
definition implies an equitable
allocation of resources with
benefits accruing to every section
of society, which is a utopian
concept. But the allocation of
resources must be focused on the
indented short and long terms
benefits and economic linkages at
mathematically on some regional
and population criteria.Utopia it is
because it dreams of an ideal
state which we all strive
towards.The inclusive growth
approach takes a longer term
perspective as the focus is on
productive employment rather
than on direct income
redistribution, as a means of
increasing incomes for excluded
groups. The inclusive growth
definition is in line with the
absolute definition of pro-poor
growth, but not the relative
definition.
By focusing on inequality, the
relative definition could lead to
sub-optimal outcomes for both
poor and non-poor households.
Inclusive growth focuses on ex-
ante analysis of sources of, and
constraints to sustained, high
growth, and not only on one
group – the poor.
Key components of Inclusive
Gr owth (IG )sh ould be as
follows:-
8 IG focuses on economic
growth which is a necessary
and crucial condition for
poverty reduction.
8 IG adopts a long term
perspective and is concerned
with sustained growth.
(i) For growth to be
sustained in the long
 UPSCPORTAL Current Affairs : http://upscportal.com/civilservices/current-affairs
Green Economy defined by
Karl Burkart is based on six
mai n se ctor s,wh ich are as
follows:
8 Renewable energy (solar,
wind, geothermal, marine
including wave, biogas, and
fuel cell)
8 Green buildings (green
retrofits for energy and
water efficiency, residential
and commercial assessment;
green products and materials,
and LEED construction)
8 Clean transportation
(alternative fuels, public
transit, hybrid and electric
vehicles, carsharing and
carpooling programs)
8 Water management (Water
reclamation, greywater and
rainwater systems, low-
water landscaping, water
purification, stormwater
management)
8 Waste management
(recycling, municipal solid
waste salvage, brownfield
land remediation, Superfund
cleanup, sustainable
packaging)
8 Land management (organic
agriculture, habitat
conservation and
restoration; urban forestry
and parks, reforestation and
afforestation and soil
stabilization)
UNEP Green Economy
Initiative (GEI)
The Green Economy Initiative
launched by the United Nations
Environment Programme in
October 2008 is aimed at seizing
the opportunities this modern
WWW.UPSC.PORTAL.COM
concept of a green economy has
to offer. It seeks to accomplish
two tasks. First, it tries to make
a “beyond-anecdotal” macroe-
conomic case for investing in
sectors that produce environ-
mentally friendly or
environmentally enhancing
products and services (“green
investment”). By a large and not just equitable
“macroeconomic case”, it mainly
refers to the contribution of green
investment to output and job
growth. Second, the initiative tries
to provide guidance on how to
boost pro-poor green investment.
The goal is to encourage and
enable policymakers to support
increased green investment from
both the public and private
sectors.
The UNEP GEI activities include
providing advisory services to
countries interested in greening
their economies; producing
research products, such as The
Green Economy Report, The
Economics of Ecosystems and
Biodiversity (TEEB) series of
reports, and the Green Jobs
Report; and engaging partners to
effectively promote and
implement green economy
strategies.
Concept of Inclusive
Growth
Rapid and sustained poverty
reduction requires inclusive growth
that allows people to contribute
to and benefit from economic
growth.Inclusive Growth refers
both to the pace and pattern of
growth, which are considered
interlinked, and therefore in need
to be addressed together.
Inclusive growth by its very
definition implies an equitable
allocation of resources with
benefits accruing to every section
of society, which is a utopian
concept. But the allocation of
resources must be focused on the
indented short and long terms
benefits and economic linkages at
mathematically on some regional
and population criteria.Utopia it is
because it dreams of an ideal
state which we all strive
towards.The inclusive growth
approach takes a longer term
perspective as the focus is on
productive employment rather
than on direct income
redistribution, as a means of
increasing incomes for excluded
groups. The inclusive growth
definition is in line with the
absolute definition of pro-poor
growth, but not the relative
definition.
By focusing on inequality, the
relative definition could lead to
sub-optimal outcomes for both
poor and non-poor households.
Inclusive growth focuses on ex-
ante analysis of sources of, and
constraints to sustained, high
growth, and not only on one
group – the poor.
Key components of Inclusive
Gr owth (IG )sh ould be as
follows:-
8 IG focuses on economic
growth which is a necessary
and crucial condition for
poverty reduction.
8 IG adopts a long term
perspective and is concerned
with sustained growth.
(i) For growth to be
sustained in the long
 UPSCPORTAL Current Affairs : http://upscportal.com/civilservices/current-affairs
linkages of a green economy for
poverty eradication and broad-
based, inclusive growth.
Integrating green economy
strategies and policies into
poverty eradication, food security
and energy security is an
imperative for sustainable
development.
Objectives of the Ministerial
Discussion were:-
(i) To obtain a comprehensive
update on the recent green
economy developments
within major international
policy forums and through
the UNEP-led green
economy initiative;
(ii) To discuss how the concept
of the green economy can be
further implemented at the
country level;
(iii) To build on existing policies
and processes that are
supporting the shift to
sustainable consumption and
production and a green
economy;
Conclusively we can say,designed
properly, green economy policies
and programmes with inclusive
growth mechanism can directly
contribute to poverty eradication.
Successful examples can offer
lessons and possible models for
replication. For instance, India’s
rural employment guarantee
programme is at one and the same
time an anti-poverty programme
and an ecosystem restoration
programme.
Understanding the flexibility or
lack of flexibility of each country
to change this energy mix and
devising innovative methods to
secure energy security are the
need of the hour without
compromising on the need for high
economic growth to meet the
aspirations of the people,
especially in developing countries.

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UPSCPORTAL Current Affairs : http://upscportal.com/civilservices/current-affairs
INDIA IN SPACE :
A BAG FULL OF SUCCESS
The space activities in the
country were initiated with
the setting up of Indian
National Committee for
Space Research
(INCOSPAR) in 1962. In
the same year, the work on
Thumba Equatorial
Rocket Launching Station,
(TERLS) near Thiruvananthapuram was also
started. The Indian space programme was
institutionalized in November 1969 with the formation
of Indian Space Research Organisation (ISRO). The
Government of India constituted the Space
Commission and established the Department of Space
(DOS) in June 1972 and brought ISRO under DOS
in September 1972. Department of Space (DOS) has
the primary responsibility of promoting development
of space science, technology and applications towards
achieving self reliance and assisting in all round
development of the nation. Both the DOS and ISRO
Headquarters are located at Bangalore. The
development activities are carried out at the Centres
and Units spread over the country.
FIRST FEW STEPS TOWARDS SPACE
India launched its first experimental satellite,
Aryabhatta, in 1975 this was followed by a series of
experimental satellites like Bhaskara , Rohini,
stretched Rohini satellite series, SROSS. The first
Indian experimental satellite, APPLE, was launched.
Indian space programme reached the new stage with
the launch of the series of INSAT (Indian National
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Satellite) in1983, we have entered the fourth
generation of these satellites. The first generations of
INSAT satellites were imported from United States.
DEVELOPMENT OF INDIGENOUS TECHNOLOGY
India has indigenously developed the subsequent
generation of INSAT satellites. The INSAT satellite
system was jointly owned by the departments of
Telecommunications, Space, All India Radio,
Doordarshan, Indian Meteorology department. The
super cyclone of Orissa has highlighted the limitation
of Indian space programme. This led to the
development of exclusive satellites. The first ever
exclusive satellite for weather monitoring called
METSAT was launched. This was named Kalpana
after the Indian born American astronaut Kalpana
Chawla who died in Colombia crash.India had
launched an exclusive satellite for education called
EDUSAT. This has revolutionized the fields of
education and health too. The tele education and tele
medicine projects got further boost with the
successful launching of this exclusive satellite. India
launched the series of remote sensing satellites in
1988. The latest in this series was RESOURCE SAT.
Apart from satellites and satellite launch vehicles,
India developed an impressive space infrastructure.
For instance, the Vikram Sarabai Space Centre-VSSC
at trivendrum, National Remote Sensing Agency in
Hyderabad, Space Application Centre-SAC, in
Ahmedabad., Thumba Equatorial Rocket Launching
Station - TERLS at Thumba in Kerala. Physical
Research laboratories - PRL in Ahmedabad , and a
host of satellite tracking ground stations in India and
 UPSCPORTAL Current Affairs : http://upscportal.com/civilservices/current-affairs
Abroad. Several universities, research institutions are
also actively associated with the development of space
programme in India.
OBJECTIVES & SPECIALITIES OF
INDIAN SPACE PROGRAMMES
The Space Commission formulates the policies and
oversees the implementation of the Indian space
programme to promote the development and
application of space science and technology for the
socio-economic benefit of the country. The speciality
of Indian space programme is that it is dedicated to
the socio economic development of our country. Even
before India had its first experimental satellite, India
conducted the Satellite Instructional Television
Experimen t- SITE in 1975-76. The American satellite
ATS-6 was leased out for this purpose. As a part of
this experiment, television programmes were beamed
to 2500 villages using satellite. This experiment paved
the way for the development of television in India. In
1977-79, India successfully conducted Satellite
Telecommuni-cation Experimental Project - STEP.
The Franco German satellite, Symphony was taken
on lease for this purpose. The INSAT satellites
provided benefits ranging from television
broadcasting to weather prediction.
Telecommunication, tele education, tele medicine
projects are carried out with the help of INSAT
satellites. The myriad hour multi channel television
boom would not have been possible without the
INSAT satellite system. The information revolution
and telecommuni-cation revolution were also the
result of the INSAT satellites. Indian National Satellite
(INSAT) programme for telecommunications, TV
broadcasting, meteorology, developmental education,
etc. Remote Sensing programme for application of
satellite imagery for various developmental purposes.
Indigenous capability for design and development of
spacecraft and associated technologies for
communications, resources survey and space sciences.
Design and development of launch vehicles with
indigenous technology for access to space and orbiting
INSAT, IRS spacecraft and space science missions.
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Research and development in space sciences and
technologies as well as application programme for
national development.
REMOTE SENSING SATELITES
The Remote Sensing satellites provide a range of
benefits. They include the Exploration of natural
resources, flood zone mapping, drought assessment,
desert land identification and reclamation, estimating
the forest cover, assessing the extent of smoke
generated by thermal power stations, estimating the
crop yield and crop acreage, providing location
specific development information, monitoring of
command areas, etc. India is conducting National
Natural Resources Management Systems- NNRMS
using remote sensing data provided by these satellites.
We are also conducting Integrated Mission for
Sustainable Development-IMSD, with the service
provided by these satellites. The Vanjuvanka
watershed in Anantapur district in Andhra Pradesh is
also part of IMSD. These satellites are the most
advanced and sophisticated satellites making us
leaders in the area of remote sensing. For instance,
the OCEAN SAT can measure the oxygen quantity
in the algae underneath the oceans thereby giving an
accurate estimate of marine resources. Biennial forest
surveys are conducted using the data provided by
remote sensing satellites. Our remote sensing satellites
can provide reasonably accurate data about the extent
of crops sown helping us to undertake agricultural
plans. These remote sensing satellites can estimate the
possible crop yield one month before harvest.
Monitoring of command areas using these satellites
would ensure supply of irrigation water to the tail end
farmers. The very small aperture terminals VSATs
were set up to support the national information and
communication network.
INDIA IN ELITE LEAGUE & MARKETING PROCESS
Apart from satellites, India developed capabilities in
launch vehicle technology too. Starting with a
simple Satellite Launch Vehicle-SLV, India went on
to develop the Augmented Satellite Launch vehicle-
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UPSCPORTAL Current Affairs : http://upscportal.com/civilservices/current-affairs
ASLV, the Polar Satellite Launch Vehicle-PSLV,
the Geo Synchronous Satellite Launch Vehicle-
GSLV . India has also indigenously developed the
VIKAS engine used in the PSLV. The PSLV is used
for the launching of remote sensing satellites in earth’s
polar orbit. The PSLV was also used in the
Chandrayan, India’s first ever Lunar Mission. The
Geo Synchronous satellite launch vehicle is used in
the launching of communication satellites in earth’s
Geo Synchronous orbit. India has also indigenously
developed the cryogenic engine used in the GSLV.
India is not only self sufficient in space programme,
but infact attained international recognition. This
helped us to enter into highly competitive global space
products market. A special agency called ANTRIX
Corporation was set up for this purpose within the
Department of Space. India’s INSAT- 2 E
transponders were leased to INTELSAT, International
Telecommunication Satellite. India has also entered
into an agreement with the European space agency
AERIAN space for the marketing of its Launch
Vehicle Technology. We have also reached an
agreement with the American Remote Sensing
Company SIO SAT for marketing its remote sensing
data. India conducted a programme called sharing of
experience in space, shares to train the third world
space personnel. India is also becoming part of Russia
s GLOSNOS project. Indian Space Programme
developed many products which are now used in
industry. The space programme has several spin off
benefits which include production of low weight
material used in creation of artificial limbs.Against
this impressive background, India has now embarked
upon the ambitious programme of lunar mission. The
success of Chandrayaan-1 revealed to the world,
India’s capability in one of the highly sophisticated
areas of science and technology.
ACHIEVEMENTS OF ISRO SO FAR IN BRIEF
So far, 51 Indian Satellite Missions, and 27 Launches
from Sriharikota have been conducted.Namely they
are as follows:-
8 WWW.UPSCPORTAL.COM
2011
♦ PSLV-C16 successfully launches Three
Satellites–RESOURCESAT-2, YOUTHSAT,
X-SAT from Sriharikota (April 20, 2011).
2010
♦ GSLV-F06 launched from Shriharikota (Dec
25, 2010). GSAT-5Pcould not be placed into
orbit as the GSLV-F06 mission was not
successful.
♦ PSLV-C15 successfully launches Five Satellites
– CARTOSAT-2B, ALSAT-2A, two
nanosatellites-NLS-6.1 & 6.2 and a pico-
satellite-STUDSAT from Sriharikota (July 12,
2010).
♦ GSLV-D3 launched from Sriharikota (Apr 15,
2010). GSAT-4satellite could not be placed in
orbit as flight testing of the Indigenous
Cryogenic Stage in GSLV-D3 Mission was not
successful.
2009
♦ PSLV-C14 successfully launches Seven
Satellites – OCEANSAT-2, Four CUBESAT
Satellites and Two RUBIN-9 from Sriharikota
(Sept. 23, 2009).
♦ PSLV-C12 successfully launches RISAT-2 and
ANUSAT from Sriharikota (April 20, 2009).
2008
♦ PSLV-C11 successfully launches
CHANDRAYAAN-1 from Sriharikota
(October 22, 2008).
♦ PSLV-C9 successfully launches CARTOSAT-
2A, IMS-1 and 8 foreign nano satellites from
Sriharikota (April 28,2008).
♦ PSLV-C10 successfully launches TECSAR
satellite under a commercial contract with
Antrix Corporation (January 21, 2008).
 UPSCPORTAL Current Affairs : http://upscportal.com/civilservices/current-affairs
2007
♦ Successful launch of GSLV (GSLV-F04) with
INSAT-4CR on board from SDSC SHAR
(September 2, 2007).
♦ ISRO’s Polar Satellite Launch Vehicle, PSLV-
C8, successfully launched Italian astronomical
satellite, AGILE from Sriharikota (April 23,
2007).
♦ Successful launch of INSAT-4B by Ariane-5
from Kourou French Guyana, (March 12,
2007).
♦ Successful recovery of SRE-1 after
manoeuvring it to reenter the earth’s atmosphere
and descend over the Bay of Bengal about 140
km east of Sriharikota (January 22, 2007).
♦ ISRO’s Polar Satellite Launch Vehicle, PSLV-
C7 successfully launches four satellites –
India’s CARTOSAT-2 and Space Capsule
Recovery Experiment (SRE-1) and Indonesia’s
LAPAN-TUBSAT and Argentina’s
PEHUENSAT-1 (January 10, 2007).
2006
♦ Second operational flight of GSLV (GSLV-F02)
from SDSC SHAR with INSAT-4C on board.
(July 10, 2006). Satellite could not be placed
in orbit.
2005
♦ Successful launch of INSAT-4A by Ariane from
Kourou French Guyana, (December 22, 2005).
♦ ISRO’s Polar Satellite Launch Vehicle, PSLV- 2000
C6, successfully launched CARTOSAT-1 and
HAMSAT satellites from Sriharikota(May 5,
2005).
2004
♦ The first operational flight of GSLV (GSLV-
F01) successfully launched EDUSAT from
SDSC SHAR, Sriharikota (September 20,
2004)
WWW.UPSCPORTAL.COM
2003
♦ ISRO’s Polar Satellite Launch Vehicle, PSLV-
C5, successfully launched RESOURCESAT-
1(IRS-P6) satellite from Sriharikota (October
17, 2003). Successful launch of INSAT-3E by
Ariane from Kourou French Guyana,
(September 28, 2003).
♦ The Second developmental launch of GSLV-
D2 with GSAT-2on board from Sriharikota
(May 8, 2003).
♦ Successful launch of INSAT-3A by Ariane from
Kourou French Guyana, (April 10, 2003).
2002
♦ ISRO’s Polar Satellite Launch Vehicle, PSLV-
C4, successfully launched KALPANA-1
satellite from Sriharikota(September 12, 2002).
♦ Successful launch of INSAT-3C by Ariane from
Kourou French Guyana, (January 24, 2002).
2001
♦ ISRO’s Polar Satellite Launch Vehicle, PSLV-
C3,successfully launched three satellites —
Technology Experiment Satellite (TES)of
ISRO, BIRD of Germany and PROBA of
Belgium–into their intended orbits (October 22,
2001).
♦ The first developmental launch of GSLV-D1
with GSAT-1 on board from Sriharikota (April
18, 2001).
♦ INSAT-3B, the first satellite in the third
generation INSAT-3 series, launched by Ariane
from Kourou French Guyana, (March 22,
2000).
1999
♦ Indian Remote Sensing Satellite, IRS-P4
(OCEANSAT), launched byPolar Satellite
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UPSCPORTAL Current Affairs : http://upscportal.com/civilservices/current-affairs
Launch Vehicle (PSLV-C2) along with Korean
KITSAT-3 and German DLR-TUBSAT from
Sriharikota (May 26, 1999). INSAT-2E, the last
satellite in the multipurpose INSAT-2 series,
launched by Ariane from Kourou French
Guyana, (April 3, 1999).
1998
♦ INSAT system capacity augmented with the 1992
readiness of INSAT-2DTacquired from ♦ INSAT-2A, the first satellite of the
ARABSAT (January 1998).
1997
♦ INSAT-2D, fourth satellite in the INSAT series,
launched (June 4, 1997). Becomes inoperable
on October 4, 1997. (An in-orbit satellite,
ARABSAT-1C, since renamed INSAT-2DT,
was acquired in November 1997 to partly
augment the INSAT system).
♦ First operational launch of PSLV with IRS-1D 1990
on board (September 29, 1997). Satellite placed
in orbit.
1996
♦ Third developmental launch of PSLV with IRS-
P3, on board (March 21, 1996). Satellite placed
in polar sunsynchronous orbit.
1995
♦ Launch of third operational Indian Remote
Sensing Satellite, IRS-1C(December 28, 1995).
INSAT-2C, the third satellite in the INSAT-2
series, launched (December 7, 1995).
1994
♦ Second developmental launch of PSLV with
IRS-P2, on board (October 15, 1994). Satellite
successfully placed in Polar Sunsynchronous
Orbit.
♦ Fourth developmental launch of ASLV with
SROSS-C2, on board (May 4, 1994). Satellite
placed in orbit.
10 WWW.UPSCPORTAL.COM
1993
♦ First developmental launch of PSLV with IRS-
1E on board (September 20, 1993). Satellite
could not be placed in orbit
♦ INSAT-2B, the second satellite in the INSAT-2
series, launched (July 23, 1993).
indigenously-built second-generation INSAT
series, launched (July 10, 1992).
♦ Third developmental launch of ASLV with
SROSS-Con board (May 20, 1992). Satellite
placed in orbit.
1991
♦ Second operational Remote Sensing satellite,
IRS-1B, launched (August 29, 1991).
♦ INSAT-1D launched (June 12, 1990).
1988
♦ INSAT-1C launched (July 21,1988).
Abandoned in November 1989. Second
developmental launch of ASLV with SROSS-2
on board (July 13, 1988). Satellite could not
be placed in orbit.
♦ Launch of first operational Indian Remote
Sensing Satellite, IRS-1A(March 17, 1988).
1987
♦ First developmental launch of ASLV with
SROSS-1 satellite on board (March 24, 1987).
Satellite could not be placed in orbit.
1984
♦ Indo-Soviet manned space mission (April
1984).
1983
♦ INSAT-1B, launched (August 30, 1983).
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Second developmental launch of SLV-3. RS- 1972–1976

D2 placed in orbit (April 17, 1983).
1982
♦ INSAT-1A launched (April 10, 1982).
Deactivated on September 6, 1982.
1981
♦ Bhaskara-II launched (November 20, 1981). 1969
APPLE, an experimental geo-stationary
communication satellite successfully launched
(June 19, 1981). RS-D1 placed in orbit (May
31, 1981)First developmental launch of SLV-
3.
1980
♦ Second Experimental launch of SLV-3, Rohini
satellite successfully placed in orbit. (July 18,
1980).
1979
♦ First Experimental launch of SLV-3 with Rohini 1965
Technology Payloadon board (August 10,
1979). Satellite could not be placed in orbit.
♦ Bhaskara-I, an experimental satellite for earth
observations, launched (June 7, 1979).
1977
♦ Satellite Telecommunication Experiments
Project (STEP) carried out.
1975–1976
♦ Satellite Instructional Television Experiment
(SITE) conducted.
1975
♦ ISRO First Indian Satellite, Aryabhata,
launched (April 19, 1975).Becomes
Government Organisation (April 1, 1975).
♦ Air-borne remote sensing experiments.
1972
♦ Space Commission and Department of Space
set up (June 1, 1972). ISRO brought under
DOS.
♦ Indian Space Research Organisation (ISRO)
formed under Department of Atomic Energy
(August 15, 1969).
1968
♦ TERLS dedicated to the United Nations
(February 2, 1968).
1967
♦ Satellite Telecommunication Earth Station set
up at Ahmedabad.
♦ Space Science & Technology Centre (SSTC)
established in Thumba.
1963
♦ First sounding rocket launched from TERLS
(November 21, 1963).
1962
♦ Indian National Committee for Space Research
(INCOSPAR) formed by the Department of
Atomic Energy and work on establishing
Thumba Equatorial Rocket Launching Station
(TERLS) started.
Source : Indian Space Research Organisation
(ISRO)

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India-Japan
Starting Active Partnership
billion to $15 billion will help Indiathis month, India, Japan, and the
better manage the rupee's slump United States held their first trilat-
against the dollar. This should also eral strategic dialogue. It is credit-
boost financial cooperation and eco- able that despite the political insta-
nomic and trade ties, which are cur- bility in Japan, and the scandal-in-
rently far below potential. The In- duced paralysis in India, both coun-
dian side wants more Japanese in- tries managed to fit in these high-
The determined effort by India and vestment. For its part, Japan, which level exchanges. It is crucial that
Japan to inject life into their bilat-has just lifted a longstanding ban on growing India-Japan ties are viewed
eral relationship is showing positive the export of weapons, will be look- independently of each country's re-
results. The meeting between Prime ing to sell defence hardware to New lations with China. New Delhi and
Minister Manmohan Singh and Japa- Delhi. Beijing are engaged in improving
nese premier Yoshihiko Noda, the relations at various levels, including
sixth of the annual India-Japan sum- Prime Minister Noda reiterated his trade, eventually aiming to amica-
mits, is a marker of the steady gratitude for the substantial support bly resolve the boundary question.
progress. It yielded the first official extended from India in the wake of China is Japan's biggest trading part-
confirmation since Japan's devastat- the Great East Japan Earthquake. ner; the two have a bilateral trade
ing tsunami-earthquake-Fukushima Prime Minister Singh expressed his of $340 billion that neither can af-
meltdown that the country has not hope that Japan will make a full re- ford to endanger. The fears ex-
shut the door on a civilian nuclear covery as early as possible.The two pressed in a section of China's news
deal with India. While Mr. Noda Prime Ministers concurred that, as media that Mr. Noda's visit is part
stressed the importance of learning next year marks the 60th anniversary of a “containment strategy” aimed
the right lessons from Japan's of the establishment of diplomatic at Beijing are needless. The Chinese
nuclear accident, it appears that relations between Japan and India, government has done well to play
negotiations on a deal to assist In- they would make best use of the them down.
dia develop peaceful nuclear energy opportunity to strengthen cultural
will continue. and people-to-people exchanges in History
order to deepen mutual understand-
His pledge of $4.5 billion over the ing at their citizens' level. Exchange between Japan and India
next five years for the development is said to have begun in the 6th cen-
of the Delhi-Mumbai Industrial Cor- Prime Minister Noda's visit capped tury when Buddhism was introduced
ridor, a commitment of financial as- a year of intense bilateral activity. to Japan. Indian culture, filtered
sistance for two more infrastructure The Foreign Ministers held a strate- through Buddhism, has had a great
projects — Phase 3 of the Delhi gic dialogue in October, followed by impact on Japanese culture, and this
Metro and a biodiversity conserva- talks between the defence minis- is the source of the Japanese
tion project in West Bengal — and ters. In February, the two sides people's sense of closeness to In-
his interest in sharing high-speed signed the Comprehensive Economic dia. After World War II, in 1949, In-
railway technology with India are sig- Partnership Agreement covering dian Prime Minister Jawaharlal
nificant. Japan's enhancement of its trade in goods as well as services; Nehru donated two Indian elephants
currency swap arrangement from $3 it came into effect in August. Earlier to the Ueno Zoo in Tokyo. This

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brought a ray of light into the lives
of the Japanese people who still had
not recovered from defeat in the war.
Japan and India signed a peace
treaty and established diplomatic
relations on 28th April, 1952. This
treaty was one of the first peace
treaties Japan signed after the World
War II. Ever since the establishment
of diplomatic relations, the two
countries have enjoyed cordial rela-
tions.
Bilateral Treaties and
Agreements
» Treaty of Peace (1952)
» Agreement for Air Service (1956)
» Cultural Agreement (1957)
» Agreement of Commerce (1958)
» Convention for the Avoidance of
Double Taxation (1960)
» Agreement on Cooperation in the
field of Science and Technology
(1985)
In the post World War II period,
India's iron ore helped a great deal
Japan's recovery from the
devastation. Following Japanese
Prime Minister Nobusuke Kishi's visit
to India in 1957, Japan started
providing yen loans to India in 1958,
as the first yen loan aid extended
by Japanese government. Since
1986, Japan has become India's
largest aid donor, and remains so.
Prime Minister Mori's visit to India
in August 2000 provided the
momentum to strengthen the Japan-
India relationship. Since then, annual
meetings between prime ministers,
including Prime Minister Koizumi's
visit to India in April 2005, Prime
Minister Singh's visit to Japan in
December 2006, Prime Minister
Abe's visit to India in August 2007,
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and Prime Minister Singh's visit to manufacturing abilities, whereas
Japan in October 2008, have led to India has advantages in IT services
the establishment of the "Strategic and bioinformatics. Thanks to
and Global Partnership between vigorous economic growth in the
Japan and India" as well as the wake of the economic reforms and
further strengthening of the bilateralthe “Look East Policy” introduced
relationship. Most recently, during after 1991, India has successfully
Prime Minister Hatoyama's visit to deepened its economic relations
India in December 2009, Japan and with the East Asian countries. We
India singed the Joint Statement can see a remarkable expansion of
"New Stage of Japan-India Strategic India’s economic tie-ups with the
and Global Partnership". ASEAN countries, China and Korea
since the late 1990s, with only
While India has become the largest IndoJapan relations lagging behind.
recipient of Japanese ODA since India-China bilateral trade has
2003-04, both bilateral trade in remarkably expanded to be more
goods and Japan’s FDI into India than four times larger than India-
have almost stagnated during the Japan bilateral trade.
past decade. With major Indian
exports to Japan being dominated Koizumi’s Visit to India
by products of mineral oils, gems & in 2005
jewels, marine products (mainly
shrimps) and iron ore, India and The significance of visit of Japanese
Japan have not yet formed such a Prime Minister Junichiro Koizumi in
dynamic international division of 2005 cannot be understated
labour as can be seen among the considering the fact that this was the
East Asian countries. Japan’s first visit by a Japanese head of state
cumulative FDI into India is so far after a hiatus of nearly half a
larger than that of Korea, but as far decade. Prior to that, only two
as electronics appliances are serving Japanese heads of state
concerned, Japanese companies have visited India with a 10 year gap.
have been overwhelmed by Korean While these statistics amply
companies in the Indian market. demonstrate that a regular exchange
of high-level political visits have
India and Japan are highly been a weak link in Indo-Japanese
complementary economies, but their ties, perhaps Prime Minister
mutual complementarities remained Koizumi’s visit is a landmark one as
underexploited hitherto. Recently, it promises to initiate bilateral
however, a new tide has been comprehensive ventures into two
observed in Japan to expand Indo- areas - economic and strategic,
Japan relations based on mutual which were lying potentially
complementarities. Japan has untapped for several years. The
abundant capital and is highly highlight of the Prime Minister’s visit
advanced in technological skills and was indubitably the signing of the
product development while India is ‘Japan-India Partnership in a New
endowed with a huge market and Asian Era: Strategic Orientation of a
abundant human resources. Japan is Japan-India Global Partnership’ — an
outstanding in terms of eight-fold initiative announced
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towards strengthening Japan-India
Global Partnership, which include
the following:
» Enhanced and upgraded dialogue
architecture, including strengthening
of the momentum of high-level
exchanges, launching of a High Level
Strategic Dialogue and full
utilization of the existing dialogue
mechanisms.
» Comprehensive economic
engagement, through expansion of
trade in goods and services,
investment flows and other areas of
economic cooperation, and
exploration of a Japan-India
economic partnership agreement.
» Enhanced security dialogue and
cooperation.
» Science & Technology Initiative
» Cultural an academic initiatives
and strengthening of people-to-
people contacts
» Cooperation in ushering a new
Asian era
» Cooperation in the UN and other
international organization, including
early reform of the UN Security
Council
» Cooperation in responding to
global challenges and opportunities.
While this eight-fold initiative
incorporates many issues addressed
by the two countries in their Joint
Declaration of December 2001, it is
certainly a more comprehensive common interests and concerns in
delineation and framework of areas the years to come so that they can
of common interests and concerns. look back at their relations with pride
In a nutshell, it can be stated that and satisfaction at the end of the
there is a unique paradox that has next five decades, when we
defined India-Japan relations at celebrate a hundred years of the
large. On the one hand, there has establishment of relations.
been the absence of any major Bilateral trade is expanding in the
dispute. On the other, however, what recent years. However, the speed
has been missing is the richness that and scope of expansion are still
could have characterized bilateral limited. Joint Study Group (JSG),
ties. In other words, the relationship composed of government officials
to date can be chronicled as one of and representatives of business and
missed opportunities. It is clear that academia from the two countries,
the synergy of Indo-Japanese held four meetings after July, 2005.
cooperation is essential not just to JSG submitted its report to both
Prime Ministers when they met in
further bilateral relations, but for the
greater cause of a more secure Asia- July, 2006, which includes a
Pacific region. Even though the visit recommendation for launching EPA
by Prime Minister Koizumi was short, negotiations. In December, 2006, the
it should be used as bedrock for Prime Ministers of the two countries
furthering bilateral ties. decided to launch immediate
negotiations for the conclusion of a
An increased awareness among the bilateral Economic Partnership
general populace of the two nations A g r e e m e n t / C o m p r e h e n s i v e
as envisaged under the eight-fold Economic Partnership Agreement
initiative is equally crucial as the aiming to complete in substance as
extent of media coverage received soon as possible in approximately
by such landmark steps as Koizumi’s two years. Thirteen rounds of
visit and need to be highlighted. negotiations were held in New Delhi
While India’s embarkation on a ‘Look and Tokyo respectively as of July
East’ policy in the last decade was 2010.
symptomatic of the significance
India attaches to the region, the time Japan-India Strategic Dialogue on
has come to exploit the full potential Economic Issues which reviews the
of interaction with countries like current status of bilateral economic
Japan. The two countries should issues discussed at Summit
work together in the areas of meetings, and undertakes

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coordination as necessary was held 3 times in New Delhi and Tokyo with the negotiations with a view to
respectively as of July 2010 since the Dialogue was launched in July 2007. concluding an Agreement for
In August 2007, the Business Leaders' Forum was held in New Delhi on the Cooperation in the Peaceful Uses of
occasion of Prime Minister Abe's visit to India, and the Second meeting Nuclear Energy in a mutually
was held in Tokyo in October 2008. satisfactory manner. With regard to
rare earths, the two Prime Ministers
shared the view that both
Governments should continue their
dialogue in order for Japanese and
Indian enterprises to jointly
undertake industrial activities.
The long-awaited India-Japan CEPA/
Japanese private-sector’s interest in India is rising, and, currently, about EPA was finally signed in February
627 Japanese companies have branches in India. (The figure doubled over 2011, and came into effect in
the last 3 years.) August. Tariffs will be eliminated on
90 per cent of Indian and 97 per cent
of Japanese goods over ten years.
Japan is expected to export more
auto-parts and steel products to
India and import more agricultural
and marine products from India.
The two Prime Ministers welcomed the entry into force of the Japan-India National treatment, on the side of
Comprehensive Economic Partnership Agreement (CEPA) in August this Japan, is accorded for the
year and the commencement of negotiations on an agreement on social application of approvals for the
security. With regard to the Delhi-Mumbai Industrial Corridor (DMIC), Prime release of generic medicines. Some
Minister Noda announced the intention of the Government of Japan to improvement has been made for the
make available finance totaling 4.5 billion US dollars in the next five years. movement of people, including Yoga
The two Prime Ministers concurred that they would promote participation instructors, English teachers and
of Japanese companies to realize the DMIC. Indian cuisine masters. IndiaJapan
In this regard, both Governments reached an agreement on such issues as bilateral trade will be more than
Japan's involvement with the Delhi-Mumbai Industrial Corridor doubled to $25 billion by 2014 under
Development Corporation (DMICDC), relaxation of financial restrictions the CEPA/EPA.
so as to promote DMIC projects, allocation of natural gas for DMIC projects,
and early realization of three model projects, namely, seawater desalination What is CEPA ?
at Dahej, Gujarat, a microgrid system using large-scale photovoltaic (PV)
power generation Project at Neemrana Industrial Area in Rajasthan, and The second phase of India’s Look
gas-fired independent power producer (IPP) Project in Maharashtra. The East Policy aims to achieve just that.
two Prime Ministers concurred on the need to strengthen bilateral Against this background, India-
cooperation on infrastructure development in Southern India, improvement Japan ties are appropriately
of connectivity between Chennai and Bangalore, and development of India's positioned for take-off. The
High-speed railway system. Prime Minister Noda pledged that the significance of Prime Minister
Government of Japan would extend ODA loans totaling approximately 1.7 Singh’s visit to Japan can be seen in
billion US dollars (approx. 134.3 billion yen) in total for two projects four areas: conclusion of four years
including for the Delhi Mass Rapid Transport System Project. The two Prime of negotiations on a Comprehensive
Ministers decided to enhance the earlier bilateral currency swap Economic Partnership Agreement
arrangement from 3 billion US dollars to 15 billion US dollars. Concerning (CEPA), deciding to speed up
civil nuclear cooperation, Prime Minister Singh noted that he understood negotiations on a civil nuclear deal,
Japan's sensitivity well. The two Prime Ministers decided to move forward simplifying visa procedures, and

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finding common ground for
convergence of interests in securing
peace and stability in Asia. CEPA is
broader than a free trade agreement
because it includes steps to promote
greater investment and also
addresses intellectual property
rights. The CEPA will help address
this imbalance and Japan will have
to reduce tariffs on 97 per cent of
Indian imports, and India will have
to reduce tariffs on 90 per cent of
goods imported from Japan over the
next decade. Japan will get greater
market access for most industrial
goods, as well as several
agricultural products such as durian,
curry, tea leaves, lumber, shrimp and
shrimp products. India will get
improved market access in Japan in
auto parts, steel panels, and other
industrial materials, as well as DVD
players, video cameras and
industrial machinery.
The two countries began talks on a
civilian nuclear deal in June 2010 but
the subject is too sensitive in Japan
because India has refused to adhere
to the NPT and CTBT as it considers
them discriminatory, even though
India has voluntarily suspended
nuclear testing. In late 2009, Prime
Minister Singh said that India’s
position on the CTBT could change
if Beijing and Washington were to
join the pact. China, India and the
US are three of the nine “Annex 2”
states that must ratify the treaty for
it to enter into force. Japan thus
agreed to start negotiation with
India on a framework for the
peaceful transfer of nuclear power
technologies to India. Prime
Minister Kan agreed to speed up
negotiations, while seeking India’s
understanding for Japan’s
sentiments. Both leaders agreed
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that civil nuclear energy can be a , As for the destination of Japan’s IT
mutually beneficial area for offshoring, currently 80 per cent of
cooperation. India welcomes Japanese companies offshore to
Japanese firms to participate in the China and only 25 per cent to India.
expansion of its nuclear industry for For India, Japan accounts for only
peaceful purposes. less than 2 per cent of its total
software and IT services exports. As
Until recently, Japanese companies for Japanese subsidiaries of IBM and
had a negative image about India’s Accenture, they are already fully
investment environment, which utilizing Indian IT resources through
constituted a sense of offshoring to their Indian
“psychological distance” from India. subsidiaries. It will be strategically
However, the success of Korean more important for Japanese
companies in gaining a large share companies to focus on India as an
of the Indian consumer electronics IT offshore location, especially if
market indicates that what Japanese they want to go global.
companies tended to identify as
areas of concern, i.e. adverse The level of people-to-people
investment environment, are not exchange between India and Japan
necessarily critical factors that is still far from satisfactory, which
deterred Korean or Singaporean is exemplified by stagnated student
companies. The number of Japanese exchanges. It should be remembered
companies in India has increased that there are as many as three
from 267 in January 2006 to 438 in million Indian Americans, most of
January 2008 and from 550 in whom are professionals, playing an
October 2008 to 725 in October indispensable role in deepening and
2010. Their investment value has cementing the relationship between
more than doubled to 189 billion yen India and USA. Improving the
in 2007-08 and totalled 809 billion scholarship and Japanese language
yen in 2008-09, outstripping training schemes for Indian
Japanese FDI into China. students, increasing the number of
lectures given in English at Japanese
Japan is globally ranked the second universities, and providing attractive
largest IT market with an estimated career paths for Indian graduates to
turnover of $100 billion. Japan is apply for Prospects and Challenges
renowned as one of the most for Expanding India-Japan Economic
competitive nations in Relations enlarged employment
manufacturing industries or opportunities in Japanese
hardware production. As of 2007, companies are urgently needed for
Japan had a total of 907,990 IT attracting more Indian students to
engineers and was short of 501,000 Japan. Now is a good time, when
IT engineers including 360,000 entering a new phase of India-Japan
professionals. Generally speaking, relations, for us to consolidate our
Japanese companies are inclined relations especially through
towards in-house procurement and accelerated people-to-people
are rather cautious about overseas exchanges. Number of Japanese
IT offshoring. But when they nationals residing in India: 3,284 (as
offshore, they prefer to turn to China of October, 2008)
 UPSCPORTAL Current Affairs : http://upscportal.com/civilservices/current-affairs

Number of Indian nationals residing Project (Phase 2) (Yen Loan: 146.0

in Japan: 22,335 (as of December, million dollars).
2008). » Transmission System
Modernization and Strengthening
The Japanese economy has been Project in Hyderabad Metropolitan
strained in the aftermath of the Area (Yen Loan: 197.5 million
massive earthquake and tsunami, dollars)
accompanied by radiation leak at
the Fukushima nuclear power plant. Conclusion
We cannot ignore the after effects
of the Great East Japan Earthquake As this year marks the fifth year
on India-Japan economic relations. since the establishment of the
F irst, the number of Indian IT Japan-India Strategic and Global
engineers working in Japan has been Partnership in 2006, with the 60th
reduced from 15,000 to 7,000, since anniversary of the establishment of
many Indian IT engineers have not diplomatic relations next year, this
yet returned to Japan. Further, since State visit by Prime Minister Noda
domestic supply chains have been has impressed on all sides the
damaged by the earthquake and friendly bilateral relationship
given the record appreciation of the between Japan and India, and
yen, Japanese companies are under contributed to further consolidating
even greater pressure to reallocate a trusting relationship at the leaders'
their production facilities to level. With regard to bilateral
emerging economies. relations, the two Prime Ministers
shared the view that they should
All these factors provide a good expand cooperation in the area of
opportunity for further accelerating maritime security in the political and
Japanese FDI into India. The security fields. Substantial progress
following two tasks should be was made in many economic areas,
addressed for further expanding including cooperation for the DMIC,
India-Japan economic relations. infrastructure development in
First, the Delhi-Mumbai Industrial Southern India including the
Corridor should be started along the connectivity between Chennai and
right line, which will be the Bangalore, enhancement of the
touchstone for future India-Japan bilateral currency swap
collaboration. Second, human arrangement, extension of ODA
exchanges should be promoted by loans including for the Delhi Mass
all means for cementing and Rapid Transport System, joint rare
expanding bilateral relations. earths projects, among others. With
Japanese Aid to India (1,545.7 regard to regional situations and
million dollars) global issues, the two Prime
» Kerala Water Supply Project (II) Ministers also affirmed that the two
(Yen Loan: 273.1 million dollars) countries continue cooperation in
» Delhi Mass Rapid Transport various regional issues in Asia and
System Project (Phase 2) (II) (Yen other international issues such as
Loan: 113.2 million dollars) the global economy and climate
» Gujarat Forestry Development change.

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India - Nepal relations are ‘unique’ for
reasons ranging from geographical
contiguity to close cultural ties, and
extensive institutional and social
relationships. Cultural, economic and
geographical factors along with the
common bond of a shared religion
have had a great influence on bilateral
relations. As two sovereign nations,
both India and Nepal are naturally
guided by their national interests.
These interests are related to cultural,
economic and security areas. Despite
some turbulence in the past, India-
Nepal relations have remained close,
stable and mutually beneficial. Cultural
bond provides moral strength to the
relationship, while respect for each
others political identity as independent,
sovereign countries provides the
political base for meaningful
interaction. Nepal recognizes and
admires India’s position as the largest
democracy and an emerging economic
and strategic power which is striving
to find its rightful place in the comity
of nations. article-india & nepal It
appreciates the support accorded to
Nepal in the spirit of Panchsheel.
There exist vast areas of
complimentarity and mutuality of
benefits between the two countries.
Economic reforms in both countries
have opened up new avenues of
cooperation in trade and commerce,
investment and joint collaboration
projects. Nepal can benefit
INDIA-NEPAL
Relations in New Light
tremendously from such bilateral
interaction. Greater creativity is
required, however, to take full
advantage of the complimentarity of
economies between the two countries.
Security issues are the most vital
questions that determine the tenor and
content of the relationship between
the two countries at present. It
determines the trust, endurance and
sustainability of the relationship. There
have been strong commitments to
each other in the past like assurances
not to allow their territory to be used
for undertaking unlawful activities
against the other. Formation of
governmental committees and
frequent consultations aim at bettering
the security scenario. Despite these
efforts, perceptions about Nepal not
being adequately appreciative of
India’s sensitivities has caused
sufferings to Nepal in the form of
criticism and lack of help at times. As
a result, mutual trust and confidence
are sometimes shaken and put to
stress. Promoting regional cooperation
is another way of indirectly improving
bilateral relations. A few areas
marked for the purpose include trade
and transit, energy, water resources,
investment and combating terrorism.
The biggest problem troubling the
Himalayan kingdom is the Maoist
insurgency. There are diverse opinions
depending upon ones vantage point
about where the blame lies for the
present crisis. A number of measures
are urgently needed to tackle the
present situation. Security related
establishments have to be
strengthened to tackle the rising tide
of Maoist attacks and to maintain the
fabric of the State. But this should not
be misconstrued as remilitarization of
Nepal. The move is solely for the
purpose of facing the Maoist threat
forcefully and adequately. The Maoist
problem is not a problem of Nepal
alone. It has ramifications on India as
well in the form of growing linkages
with the Naxals in India and even
Bangladesh. Ever since the
confrontation between the Maoist-led
government and the Nepal Army in
2009 led to the resignation of Mr.
Prachanda as Prime Minister, India
has been dead-set against the Maoists
leading any kind of coalition
government in Kathmandu. Indeed,
the officials running India’s Nepal
policy made it clear the Maoists
should ideally not even be allowed to
join a coalition headed by someone
else, that they be “punished” — a
word Indian diplomats in Kathmandu
have used with their counterparts from
other countries — for having dared to
presume they could call the shots in
the wake of their victory in the April
2008 CA elections.
During the wasted year of Madhav
Kumar Nepal’s premiership, which
India backed to the hilt, New Delhi
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hoped the Maoists would either split
or come under pressure to accept a
unilateralist reading of the Twelve Point
Understanding and the Comprehensive
Peace Agreement — two documents
which paved the way for the
constitutional and political
transformation of Nepal. Though the
Maoists see themselves as creating a
new mainstream, India wants them to
stick to the old mainstream and
abandon the hope of restructuring the
Nepali state and its institutions in any
fundamental way. This the Maoists are
not prepared to do.
Historical Background
Nepal’s trade with India continued till
1923 without having a trade
agreement with British India. Prior to
the signing of this trade agreement,
British East India Company was
interested to have trade relations with
Nepal, for expansion of its own
exports. The opening of direct India -
Tibet route via Gyantse routes further
promoted Nepal to develop trade with
India. Moreover, the development of
good transportation system and the
creation of many trade centers in the
northern India further helped to
enhance the trade turnover between
Nepal and India.
India Nepal Trade Treaty 1923
The Article VI of the first Trade
Treaty between Nepal and India
signed in 1923 provided that “No
customs duty shall be levied at British
Indian Ports as goods imported on
behalf of the Nepal government for
immediate transport to that country.”
Provision of this Article in Trade
Treaty 1923 led to the development of
Nepal-British trade freely through the
port of British India for Nepal could
not import goods from other overseas
countries.
Nepal was compelled to purchase
goods manufactured in Britain Nepal
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was very much isolated from other
countries, especially from the
developed Western countries prior to
the political change of 1951.
Treaty of Peace and Friendship
The signing of Treaty of Peace and
Friendship, and Treaty of Trade and
Commerce between Nepal and an
independent India in July 1950 can be
seen as the landmark towards the
external trade of Nepal. Treaty of
Peace and Friendship 1950 formalized
close relations between the two
countries. This Treaty can be seen as
a non-reciprocal treaty. The Treaty
symbolizes a balanced document and
served for more than five decades to
keep harness between the two
countries. Formal trade relation
between the two countries was
established in 1950 with the signing of
the Treaty of Trade. This Treaty was
modified and renewed in 1961 and
1971, and incorporated provisions
regarding transit facilities extended by
India for Nepal’s trade with a third
country, as well as on cooperation to
control unauthorized trade.
Duty free access to Nepalese imports
on a non-reciprocal basis was first
given in 1971 but with a Nepalese/
Indian material content requirement of
90 per cent. India’s influence over
Nepal increased throughout the 1950s.
The Citizenship Act of 1952 allowed
Indians to immigrate to Nepal and
acquire Nepalese citizenship with
ease—a source of some resentment
in Nepal. And, Nepalese were allowed
to migrate freely to India—a source
of resentment there. (This policy was
not changed until 1962 when several
restrictive clauses were added to the
Nepalese constitution.) Also in 1952,
an Indian military mission was
established in Nepal. In 1954 a
memorandum provided for the joint
coordination of foreign policy, and
Indian security posts were established
in Nepal’s northern frontier. At the
same time, Nepal’s dissatisfaction with
India’s growing influence began to
emerge, and overtures to China were
initiated as a counterweight to India.
King Mahendra continued to pursue a
nonaligned policy begun during the
reign of Prithvi Narayan Shah in the
mid-eighteenth century (see The
Expansion of Gorkha , ch. 1). In the
late 1950s and 1960s, Nepal voted
differently from India in the UN
unless India’s basic interests were
involved. The two countries
consistently remained at odds over the
rights of landlocked states to transit
facilities and access to the sea.
Following the 1962 Sino-Indian border
war, the relationship between
Kathmandu and New Delhi thawed
significantly. India suspended its
support to India-based Nepalese
opposition forces. Nepal extracted
several concessions, including transit
rights with other countries through
India and access to Indian markets
(see Foreign Trade , ch. 3). In
exchange, through a secret accord
concluded in 1965, similar to an
arrangement that had been suspended
in 1963, India won a monopoly on
arms sales to Nepal. In 1969 relations
again became stressful as Nepal
challenged the existing mutual security
arrangement and asked that the Indian
security checkposts and liaison group
be withdrawn. Resentment also was
expressed against the Treaty of Peace
and Friendship of 1950. India
grudgingly withdrew its military
checkposts and liaison group, although
the treaty was not abrogated.
The 1978 agreements incorporated
Nepal’s demand for separate treaties
for trade and transit. The relationship
between the two nations improved
over the next decade, but not steadily.
India continued to support the
Nepalese opposition and refused to
endorse Nepal as a zone of peace. In
1987 India urged expulsion of
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Nepalese settlers from neighboring
Indian states, and Nepal retaliated by
introducing a work permit system for
Indians working in Nepal. That same
year, the two countries signed an
agreement setting up a joint
commission to increase economic
cooperation in trade and transit,
industry, and water resources.
Relations between the two countries
sank to a low point in 1988 when
Kathmandu signed an agreement with
Beijing to purchase weapons soon
after a report that China had won a
contract for constructing a road in the
western sector to connect China with
Nepal. India perceived these
developments as deliberately
jeopardizing its security.
India also was annoyed with the high
volume of unauthorized trade across
the Nepalese border, the issuance of
work permits to the estimated 150,000
Indians residing in Nepal, and the
imposition of a 55 percent tariff on
Indian goods entering Nepal. In
retaliation for these developments,
India put Nepal under a virtual trade
siege. In March 1989, upon the
expiration of the 1978 treaties on trade
and transit rights, India insisted on
negotiating a single unified treaty in
addition to an agreement on
unauthorized trade, which Nepal saw
as a flagrant attempt to strangle its
economy. On March 23, 1989, India
declared that both treaties had expired
and closed all but two border entry
points.
The economic consequences of the
trade and transit deadlock were
enormous. Shortages of Indian
imports such as fuel, salt, cooking oil,
food, and other essential commodities
soon occurred. The lucrative tourist
industry went into recession. Nepal
also claimed that the blockade caused
ecological havoc since people were
compelled to use already dwindling
forest resources for energy in lieu of
gasoline and kerosene, which came
mostly via India. To withstand the
renewed Indian pressure, Nepal
undertook a major diplomatic initiative
to present its case on trade and transit
matters to the world community. The
relationship with India was further
strained in 1989 when Nepal
decoupled its rupee (see Glossary)
from the Indian rupee which
previously had circulated freely in
Nepal. India retaliated by denying port
facilities in Calcutta to Nepal, thereby
preventing delivery of oil supplies from
Singapore and other sources. A swift
turn in relations followed the success
of the Movement for the Restoration
of Democracy in early 1990. In June
1990, a joint Kathmandu New Delhi
communiqué was issued pending the
finalization of a comprehensive
arrangement covering all aspects of
bilateral relations, restoring trade
relations, reopening transit routes for
Nepal’s imports, and formalizing
respect of each other ’s security
concerns. Essentially, the communiqué
announced the restoration of the status
quo ante and the reopening of all
border points, and Nepal agreed to
various concessions regarding India’s
commercial privileges. Kathmandu
also announced that lower cost was
the decisive factor in its purchasing
arms and personnel carriers from
China and that Nepal was advising
China to withhold delivery of the last
shipment. The communiqué declared
that Kathmandu and New Delhi would
cooperate in industrial development, in
harnessing the waters of their
common rivers for mutual benefit, and
in protecting and managing the
environment. This was gradually
reduced when the Trade Treaty was
periodically renewed and in 1993, it
was brought down to 50 per cent of
Nepalese/Indian material content and
Nepalese labor content.
Indo-Nepal Treaty of Trade, 1991
In order to expand trade between
Nepal and India and also to encourage
collaboration in economic
development, Treaty of Trade, 1991
was signed on 6 December 1991. It
was explicitly expressed in the Treaty
to promote mutual trade between the
two countries for the benefits of
mutual sharing of scientific and
technical knowledge and experience.
Treaty of Transit, 1991 Recognizing
the fact that Nepal is a land-locked
country and its need to have access
to and from the sea to promote its
international trade, the Treaty made
the provision in its Article I that the
contracting parties shall accord to
‘traffic in transit’ freedom of transit
across their respective territories
through routes mutually agreed upon.
No distinction shall be made which is
based on flag of vessels, the places of
origin, departure, entry, exist,
destination, ownership of goods or
vessels. Further, exemption from
customs duties and from all transit
duties or other charges were made
except reasonable charges for
transportation and such other charges
as needed to commensurate with the
costs of services. In addition, for the
convenience of traffic in transit the
contracting parties agreed to provide
point or points of entry or exist
warehouses or shed and open space
for the storage of traffic in transit
awaiting customs clearance before
onward transmissions. As such the
requirements in course of import and
export of goods and articles from
Nepal was well established in this
Treaty.
Indo-Nepal Trade Treaty, 1996
This Treaty, signed on December 3,
1996 at Kathmandu, sets a landmark
in bilateral trade relation between
Nepal and India. It gave a new
direction in the trade related areas as
well as a scope for the trade
improvement especially to Nepal.
Some of the provisions made in the
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UPSCPORTAL Current Affairs : http://upscportal.com/civilservices/current-affairs
earlier treaties were replaced and
modified. It made the procedures
simple and straight so as to remove
the procedural delays. This Treaty is
seen more often as the turning point
in the history of Nepal- India trade
relations leading to several policy
changes. Government of India
provided access to the Indian market
free of customs duties and
quantitative restrictions for all products
manufactured in Nepal on the basis of
the certificate of origin. The negative
list of product imported to India were
shortened from seven to three items
which are alcoholic liquors/beverages
and their contents except industrial
spirits, perfumes and cosmetics,
cigarettes and tobacco. Export of
Nepalese consignments with the
certificate of origin would not be
delayed at the Indian customs border/
check-post. Indian investment in
Nepal in Indian Rupees for up to 25
crores would get fast track clearance.
It was decided to increase the air seat
capacity from 4000 to 6000 per week.
Also two more points in India would
be opened for Nepalese airlines. The
governments of the two countries also
agreed to have open sky policy. f. The
government of India opened the transit
route to Bangladesh through Phulbari.
Nepal amended its foreign investment
policy, company law and transfer of
technology act. h. Nepal decided to
open Nepali Stock Exchange to
overseas investors. India and Nepal
signed the power trade agreement
and allowed private investment in
hydropower project.
India was the first country to welcome
the restoration of democracy in Nepal.
Government of India welcomed the
roadmap laid down by the historic
Comprehensive Peace Agreement of
November 2006 towards political
stabilization in Nepal through peaceful
reconciliation and inclusive democratic
processes. A comprehensive
economic package worth Rs.1000
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crores was announced during the visit.
A soft credit line of USD 100 million
for infrastructure development projects
was extended, and outstanding dues
on defence purchases worth NRs. 1.6
billion waived. Government of India
also agreed to doubling the number of
GOI scholarships for Nepalese
students and to supply of 25,000
metric tons of fertilizers to Nepal at
subsidized prices.PM Pushpa Kamal
Dahal ‘Prachanda’ paid an official
visit to India from 14-17 September
2008, A Joint Press Statement was
issued at the conclusion of the visit,
reiterating the special features of the
bilateral relationship and committing
both sides to work towards further
improving relations.India agreed to
implement the Naumure hydro-electric
project on Rapti river besides the Rs.
20 crores assistance for Kosi breach
relief. Credit of up to Rs 150 crores
was also provided to GON to ensure
uninterrupted supplies of petroleum
products. Prime Minister Madhav
Kumar Nepal paid an official visit to
India from August 18 – 22, 2009 at
the invitation of the Prime Minister of
India. The two leaders had also met
earlier on the sidelines of the XVth
NAM Summit in Sherm-el-Sheikh,
Egypt. The two Prime Ministers
expressed their satisfaction on the
age-old, close, cordial and multifaceted
relations between Nepal and India and
agreed to expand them further.
India expressed full support for the
ongoing peace process and the efforts
to bring about economic
transformation in Nepal.2009 India-
Nepal Treaty of Trade and Agreement
of Cooperation to Control
Unauthorized Trade The 2009 Trade
Treaty revises the 1996 Trade Treaty
between the two countries. The 1996
Treaty has been a turning point in the
trade relations between the two
countries and resulted in phenomenal
growth of bilateral trade from Rs. 28.1
billion in 1995-96 to Rs. 204.8 billion
in 2008-09. While the Nepalese
exports to India increased from Rs.
3.7 billion to Rs. 40.9 billion, the Indian
exports to Nepal increased from Rs.
24.4 billion to Rs. 163.9 billion during
the period -1995- 2009.The 2009
Agreement of Cooperation to Control
Unauthorized Trade will allow export
of goods imported by Nepal from
India to the third countries without
necessity of carrying out any
manufacturing activity in Nepal. This
will enhance exports from Nepal to
third countries where it has a better
market access as compared to India.
Similarly it will allow export of the
goods imported by India from Nepal
to third countries. This will help
Nepalese exporters to take advantage
of the third country market access
developed by the Indian export
houses.
The relations and agreements
institutionalised in the 20th century
may not be enough to meet the needs
of the 21st century. Hence, the
emphasis should be to develop bilatersl
relations further, clear misgivings and
misunderstandings that we have
against each other, and sort out the
problems left by history. When the
subcontinent was colonised by the
British, they left behind a legacy which
has created friction among the nations
of South Asia. Both the nations will
have to overcome that, and develop
mutual relations in the changed time
and context. Instead of harping on old
disputes, India and Nepal will have to
look forward, and create an
atmosphere of cooperation. There are
certain political issues, which would
need more discussions. We can
engage on it freely and frankly, but
they can be postponed for the future.
The major thing is to build trust
between two countries, two
governments, and two peoples. Once
there is trust, and we are sensitive and
empathise with each other, even the
most difficult issues can be resolved
amicably.
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12 WWW.UPSCPORTAL.COM
 Indian River System
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An Overview Over Major Features
The rivers of India play an important role in the
lives of the Indian people. The river systems pro-
vide irrigation, potable water, cheap transporta-
tion, electricity, and the livelihoods for a large
number of people all over the country. This easily
explains why nearly all the major cities of India
are located by the banks of rivers. The rivers also
have an important role in Hindu mythology and
are considered holy by all Hindus in the country.
Seven major rivers along with their numerous
tributaries make up the river system of India. Most
of the rivers pour their waters into the Bay of Ben-
gal; however, some of the rivers whose courses take
them through the western part of the country and
towards the east of the state of Himachal Pradesh
empty into the Arabian Sea. Parts of Ladakh, north-
ern parts of the Aravalli range and the arid parts of
the Thar Desert have inland drainage. All major
rivers of India originate from one of the three main
watersheds:
» The Himalaya and the Karakoram ranges
» Vindhya and Satpura ranges and Chotanagpur
plateau in central India
» Sahyadri or Western Ghats in western India
Indus River System
The Indus River originates in the northern slopes
of the Kailash range near Lake Mansarovar in Ti-
bet. Although most of the river's course runs
through neighboring Pakistan, a portion of it does
run through Indian territory, as do parts of the
courses of its five major tributaries, listed below.
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By: Avadhesh Pandey
These tributaries are the source of the name of the
Punjab region of South Asia; the name is derived
from the Persian words Punj ("five") and aab ("wa-
ter"), hence the combination of the words (Punjab)
means "five waters" or "land of five waters".
Beas
The Beas originates in Beas Kund, lying near the
Rohtang pass. It runs past Manali and Kulu, where
its beautiful valley is known as the Kulu valley. It
joins the Sutlej river near Harika, after being joined
by a few tributaries. The total length of the river is
615 .
Chenab
The Chenab originates from the confluence of two
rivers, the Chandra and the Bhaga, It is also known
as the Chandrabhaga in Himachal Pradesh. It runs
parallel to the Pir It enters the plains of Punjab
near Akhnur and is later joined by the Jhelum. It
is further joined by the Ravi and the Sutlej in Pa-
kistan.
Jhelum
The Jhelum originates in the south-eastern part of
Kashmir, in a spring at Verinag.
Ravi
The Ravi originates near the Rotang pass in the
Himalayas and follows a north-westerly course. It
turns to the south-west, near Dalhousie, and then
cuts a gorge in the Dhaola Dhar range entering
the Punjab plain near Madhopur. It flows as a part
of the Indo-Pakistan border for some distance be-
fore entering Pakistan and joining the Chenab
river.
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Sutlej The Tapti River

System
The Sutlej originates from the Rakas Lake, which
is connected to the Manasarovar lake by a stream,
The Taapti is a river of central India. It is one of
in Tibet. It enters Pakistan near Sulemanki, and is
the major rivers of peninsular India with the length
later joined by the Chenab. It has a total length of
of around 724 km, It rises in the eastern Satpura
almost 1500 km.
Range of southern Madhya Pradesh state, before
emptying into the Gulf of Cambay of the Arabian
The Brahmaputra River Sea, in the State of Gujarat. The Western Ghats or
System Sahyadri range starts south of the Tapti River near
the border of Gujarat and Maharashtra.
The Brahmaputra originates in the Mansarovar
The principal tributaries of Tapi River are Purna
lake, also the source of the Indus and the Satluj. It
River, Girna River, Panzara River, Waghur River,
is slightly longer than the Indus, but most of its
Bori River and Aner River. car is the rivers food.
course lies outside India. It flows eastward, paral-
lel to the Himalayas. Reaching Namcha Barwa
(2900m), it takes a U-turn around it and enters The Godavari River
India in Arunachal Pradesh and known as dihang. System
The undercutting done by this river is of the order
of 5500 metres. In India, it flows through
The river with second longest course within In-
Arunachal Pradesh and Assam, and is joined by
dia, Godavari is often referred to as the Vriddh
several tributaries.
(Old) Ganga or the Dakshin (South) Ganga. The
river is about 1,450 km (900 mi) long. It rises at
Every year during the rainy season, the river over-
Trimbakeshwar, near Nasik and Mumbai (formerly
flows its banks, causing widespread devastation like
Bombay) in Maharashtra around 380 km distance
floods in Assam and in Bangladesh.Unlike other
from the Arabian Sea, and empties into the Bay of
north Indian rivers the Brahmaputra is marked by
Bengal. At Rajahmundry, 80 km from the coast,
huge deposits of silt on its bed causing it to rise.
the river splits into two streams(Vasista which
The river also shifts its channel frequently.
flows to Narsapur & Gautami which flows to other
side pasarlapudi) thus forming a very fertile delta.
The Narmada River Like any other major rivers in India, the banks of
System this river also has many pilgrimage sites, Nasik,
Triyambak and Bhadrachalam, being the major
ones. It is a seasonal river, widened during the
The Narmada or Nerbudda is a river in central
monsoons and dried during the summers. Godavari
India.It forms the traditional boundary between
river water is brownish.
North India and South India, and is a total of 1,289
km (801 mi) long. Of the major rivers of peninsu-
Some of its tributaries include Indravati River,
lar India, only the Narmada, the Tapti and the Mahi
Pranahita (Combination of Penuganga and Warda),
run from east to west. Its total length through the
Manjira, Bindusara and Sabari kinnerasani. Some
states of Madhya Pradesh, Maharashtra, and
important urban centers on its banks include Nasik,
Gujarat amounts to 1,312 kilometres (815 mi), and
Bhadrachalam, Rajahmundry and Narsapur. The
it empties into the Arabian Sea in the Bharuch dis-
Asia's largest rail-come-road bridge on the river
trict of Gujarat. It also forms the 'Dhuadhar
Godavari linking Kovvur and Rajahmundry is con-
Falls'where the river plunges over steep rocks.
sidered to be an engineering feat.

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The Krishna River The Mahanadi River

System
The Krishna is one of the longest rivers of India
(about 1300 km in length). It originates at
Mahabaleswar in Maharashtra and meets the sea
in the Bay of Bengal at Hamasaladeevi in Andhra
Pradesh. The Krishna River flows through the
states of Maharashtra, Karnataka and Andhra
Pradesh.
The traditional source of the river is a spout from
the mouth of a statue of a cow in the ancient temple
of Mahadev in Mahabaleshwar.
System
The Mahanadi River Delta in India is a basin of
deposit that drains a large land mass of the Indian
subcontinent into the Bay of Bengal. The alluvial
valley is wide and relatively flat with a meander-
ing river channel that changes its course.
The Mahanadi River flows slowly for 560 miles
(900 km) and has an estimated drainage area of
51,000 square miles (132,100 square km). It de-
posits more silt than almost any other river in the
Indian subcontinent.

Its most important tributary is the Tungabhadra

River, which itself is formed by the Tunga and
Bhadra rivers that originate in the Western Ghats.
Other tributaries include the Koyna, Bhima,
Malaprabha, Ghataprabha, Yerla, Warna, Dindi,
Musi and Dudhganga rivers.

In 2009 River Krishna has seen the worst hit floods

in 100 years

The Kaveri River

System
The Kaveri is one of the great rivers of India and is
considered sacred by the Hindus. This river is also
called Dakshin Ganga. The headwaters are in the
Western Ghats range of Karnataka state, and from
Karnataka through Tamil Nadu. It empties into the
Bay of Bengal. The source of the river is
Talakaveri(Kodagu District) located in the West-
ern Ghats about 5,000 feet (1,500 m) above sea
level. it has many tributaries including Shimsha,
Hemavati River, Arkavathy, Kapila, Honnuhole,
Lakshmana Tirtha, Kabini, Lokapavani, Bhavani,
Noyyal and Famous Amaravati.the dam con-
structed for the river is KRS(Krishna Raja Sagara)
by the Highness of Mysore through the well known
engineer Bharata Ratna Sir Mokshagundam
Visvesvarayya, which is located in Mandya district
and this river is serving as water of life for South
Indians.

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UPSCPORTAL Current Affairs : http://upscportal.com/civilservices/current-affairs

LIBYAN CRISIS
Following a spate of protests in countries around the region,
protests broke out in several areas of Libya challenging Col.
Muammar Qaddafi’s 42-year rule. In late February, as the
government’s response to these protests turned increasingly
violent, the UN Security Council responded by passing
Resolution 1970 to impose sanctions on Qaddafi and refer the
situation in Libya to the International Criminal Court (ICC). In
early March, the UN General Assembly suspended Libya’s
membership to the Human Rights Council.On March 17th, the
UN Security Council passed Resolution 1973 calling for a no-fly zone to deter the bombardment of
civilian targets by government forces. Resolution 1973 marks the first time the Security Council passed
a resolution to authorize the use of force with an explicit reference to the responsibility to protect.An ad
hoc coalition composed of the US, France, and the UK began implementing the no-fly zone immediately
after the adoption of Resolution 1973. On March 27th, NATO assumed command of the military operation
in Libya. NATO follows Resolution 1973 in banning all flights in Libyan airspace, except those for
humanitarian and aid purposes, to make sure that civilians and civilian populated areas cannot be
subjected to air attack by Qaddafi forces.NATO should develop a civilian casualty tracking, analysis
and response mechanism with personnel in both Naples and in Benghazi. In addition to cataloguing all
available known data, the cell would also recognize and investigate all allegations of civilian casualties,
in anticipation of future development of an amends system.

France announced its official recognition for the Libyan National Council as the
sole representative of the Libyan people and became the first western country to
do so. France also handed over the building of the former Libyan Embassy to
Paris to the Council. It also announced to send an ambassador to Benghazi (Libya’s
second largest city) which is the seat of Libyan National Council.The President of
France, Nicholas Sarkozy had presented the global plan on the Crisis in Libya at
an emergency summit of European Union heads of government in Brussels on 11
March 2011. European nations took actions to isolate the regime of Libyan dictator Muammar Gaddafi
with France officially recognising the rebel group in Libya. Britain pressed for the imposition of a no-
fly zone and Germany freezed assets worth billions. Foreign ministers from the G8 failed to reach any
agreement on military intervention in Libya during the two-day summit in Paris. Despite France pushing
for a no-fly zone, G8 nations couldn’t reach consensus on the establishment of a no-fly zone against

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Qadhafi’s forces in Libya. International conference
called by UK and held at London urged Muammar
Qadhafi to resign as the ruler of Libya. The London
conference in its resolution called for an immediate
ceasefire and to stop all attacks on civilians and
providing full humanitarian access to needy people.
The London conference made a declaration that
the NATO-led military operations would continue
in Libya until the above mentioned requirements
were met.
Russian Angle
The air campaign against Colonel
Gaddafi’s forces in Libya has had
an unexpected consequence far
from the front lines: it has resulted
in the first distinct manifestation of disagreement
within Russia’s ruling duo. And the evident
difference in position between President Dmitry
Medvedev and Prime Minister Vladimir Putin has
revealed a fork in the road for Russia’s foreign
policy. When questions of war and peace are being
decided, powers that aspire to a global role should
occupy a clear position – either for, or against. In
the case of Libya, Russia abstained from voting
on the UN Security Council resolution. Abstention
under President Medvedev contradicts Russia’s
prior strict adherence to a single foreign policy
principle: opposition of foreign interventions in
internal affairs.These days, the Kremlin remains
neutral, although the case of Libya is far more
urgent. As for the real goal of the military
campaign, there should be no illusions: the aim is
regime change. Any scenario that leaves Muammar
Gaddafi in power would be a moral and political
defeat for the West and West-friendly regimes in
the region.
To Moscow, Col Gaddafi is just one of many
partners, and for Russia to jeopardise the current
positive dynamic in relations with the US and the
EU for the sake of Tripoli makes no sense.
Deliberations about lost contracts in Libya are a
waste of breath: given the situation there now, there
would be no more business as usual with the
Libyan ruler anyway. The geopolitical purpose of
Copyright © 2011 | WWW.UPSCPORTAL.COM
Operation Odyssey Dawn for Washington is to stop
the erosion of its influence in the Middle East,
while for Europe it is to prevent the definitive loss
of its international role. If they put a quick end to
the Gaddafi regime they will have achieved their
aim, at least for a while. But if the operation drags
on and requires more than air strikes, which looks
probable, the effect may be just the reverse:
Western influence may plummet in the region. Arab
regimes that supported the action will also be in a
vulnerable position. After the collapse of the Soviet
Union, Moscow was at pains for a long time to
assume or at least imitate the status of a global
power, partici- pating in all decisions on the
international stage. But towards the end of the last
decade, Russia began to see itself not as a likeness
of the former Soviet Union, but as a major and
influential, although regional, power whose vital
interests have definite geographical contours. To
defend its interests, Moscow is ready to use force,
as it did in South Ossetia.Both approaches have
the right to exist, but it would be advisable to pick
one of them and stick to it. Simultaneously
declaring both puts the country in a weak and
ambivalent position, indicating that the Russian
leadership has no mutual understanding and no co-
ordinated policy. This is especially dispiriting at a
time when chaos is only increasing around the
world.
India’s Interests
Along with Russia and China, India
has been critical of the ongoing
western air strikes launched against
Libya on the ground that ordinary
Libyans would be affected and the air attacks
would prove counterproductive to the US’
purported humanitarian objective. The External
Affairs Minister, Mr S. M. Krishna, has urged the
western nations, which have imposed a ‘no fly
zone’ over Libya, to ceasefire and called upon the
Gaddafi regime and the rebel forces to abjure
violence and talk to each other. From an Indian
national security and foreign policy perspective,
the regime in Tripoli needs to be a friendly one
since Libya is an oil rich country and an eternal
UPSCPORTAL Current Affairs : http://upscportal.com/civilservices/current-affairs
shock — western air attacks or civil war — could
affect Indian industrial investments and energy
security interests there. New Delhi’s stand that air
attacks on Libya must cease is, therefore, grounded
in rational choice and Waltzian realism: Every big
or aspiring power weighs the costs and benefits of
the use of force and that their position on particular
matters in world politics is guided by self-interest.
In India’s case, it was protection of its vital interest
— Libyan oil.
India’s national interests in Libya are essentially
economic in nature. Considering an estimated
18,000 Indians who work in that country, it is a
considerable contribution to the remittance
economy and adds to our foreign exchange kitty.
Otherwise, Indian companies, especially in the
hydrocarbon, power, construction and IT sector,
have several ongoing projects in Libya. Besides,
Indian oil majors — Indian Oil, Oil India and
ONGC Videsh — are increasingly involving
themselves with the Libyan hydrocarbon sector —
both in upstream and downstream. Also, BHEL
has successfully completed execution of the
prestigious Western Mountain Gas Turbine Power
Project. Similarly, i-flex Solutions is implementing
a project on core banking solutions with the Central
Bank of Libya and five other banks. Also, over the
past three decades, Indian companies have
executed several projects there. These included
building hospitals, houses, schools, roads, power
plants, airports, dams, transmission lines etc. The
presence of Indian companies in Libya has risen
significantly in the last five years.
This includes major PSUs such as BHEL, OVL,
IOC, Oil India, and private companies such as Punj
Llyod, Unitech Ltd, KEC, Dastur Engineering,
Shapoorji Pallonji International, SECON Pvt Ltd,
Global Steel Ltd (Ispat Group Co.), NIIT, Sun
Pharma, Simplex Projects and Simplex
Infrastructure Ltd. The bilateral trade figures for
2009-10 were at $844.62 million, showing a
significant upward trend since 2004-05, peaking
to $ 1,366.65 million in 2007-08 compared to
$29.12 million in 2003-04.
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Today, the western limited liability intervention in
Libya minus boots-on-the-ground aims to provide
the rebels a level-playing field against the more
organised military muscle of Gaddafi’s forces.
Perhaps, some level of western covert para-military
support like special forces/commandos may be
operationally deployed to advice the rebels on
tactics to adopt against the regime’s forces.
Otherwise, the only advantage that the regime’s
forces have would be in terms of some superior
weaponry such as shoulder fired rocket propelled
grenades/missile launchers.
Apart from this infantry-support weaponry, the
qualitative difference would be in terms of
command and control of the regime’s forces that
in a sense would amount to a force multiplier vis-
a-vis the motley groups of rebels who lack such a
coordinated approach to combat. he ostensible
logic of the US-led western powers to embark on
this two-dimensional military adventure from the
air and sea was only to prevent a carnage of the
rebel forces through neutralisation of Gaddaffi’s
airpower, tanks and artillery by aerial and naval
bombardment. The opposition to western air strikes
is solely on the grounds that collateral damage
would ensue and innocent citizenry would be hurt
due to flaws in military target acquisit ion
procedures based on inaccurate intelligence inputs.
India abstained from voting in the UNSC and did
not go along with the NATO-EU and Arab League
countries. Clearly, the US anti-dictator policy over
Libya is a contradiction — considering Washington
adopted a pro-dictator stance on Bahrain — and
supported the Saudi Arabian force deployment to
quell the opposition to the entrenched monarchy
there. Similarly, India also was equally inconsistent
by voting with the western industrial democracies
against Iran in 2009 at the UN, but not doing so
now. But foreign policy and consistency are not
always synonymous with each other; instead,
foreign policy and national interests have to be in
tune with each other.
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LOKPAL BILL
A Drama Unfold
The Jan Lokpal Bill campaign began
in January 2011 in the backdrop of
the publicity that accompanied the
several mega-scams that surfaced
in 2010, notably those relating to the
Commonwealth Games and the
telecom spectrum allocations. It
caught the public imagination with
Anna Hazare's fast at Jantar Mantar
in New Delhi in April 2011. That
forced the UPA government to con-
stitute a joint drafting committee for
a Lokpal bill. The civil society repre-
sentatives in the committee pro-
posed a bill called the Jan Lokpal
bill, which became the basis for dis-
cussions. The basic principles on
which the bill was drafted were
culled from the United Nations Con-
vention against Corruption, which
required all countries to put in place
anti-corruption investigative agen-
cies that would be independent of
the executive government and would
have the jurisdiction to investigate
all public servants for corruption.
The Lok Sabha passed a historic
Lokpal and Lokayuktas Bill, 2011, but
defeated a parallel Constitution
(116th Amendment) Bill, which
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would have given the Lokpal consti-
tutional status. On December 22, the
government introduced the Bill
along with the Constitution (116th
Amendment) Bill in the Lok Sabha.
However the UPA government didn’t
put it to vote in the Upper House.
This Bill incorporated some of the
recommendations of the Parliamen-
tary Standing Committee on Person-
nel, Public Grievances, Law and Jus-
tice. This was a completely new Bill
as the government had withdrawn
its previous Lokpal Bill, which it in-
troduced in the Lok Sabha on August
4, 2011, and later referred to the
Standing Committee. The Standing
Committee tabled its report on De-
cember 9, 2011. The August Bill did
not propose to confer constitutional
status on the Lokpal. The Standing
Committee recommended constitu-
tional status so that the Lokpal had
higher stature and increased legiti-
macy. The committee believed that
constitutional status would enhance
the legal and moral authority of the
Lokpal institution and also insulate
the basic principles of the Lokpal
from the vicissitudes of ordinary or
transient majorities.
Yet, the Lok Sabha, which passed the
Lokpal and Lokayuktas Bill with a
few amendments, rejected the Con-
stitution (116th Amendment) Bill,
which required two-thirds majority
of the House present and voting for
its passage. The object of the Con-
stitution Amendment Bill is laudable
as it seeks to create an autonomous
and independent Lokpal at the Cen-
tre and Lokayuktas in the States with
powers of superintendence and di-
rection over investigation and pros-
ecution of public servants accused
of corruption. Yet, it failed to secure
the requisite support in the Lok
Sabha because members found a
huge gap between its object and the
provisions of the Lokpal and
Lokayuktas Bill.
During the debate in Parliament, the
opposition was critical of the
government's control over the selec-
tion and removal of members of the
Lokpal. But the Standing Commit-
tee report shows that it wanted to
dilute the provisions with regard to
selection and removal in the Bill that
was introduced in August. That Bill
had proposed a nine-member selec-
tion committee, five of whom would
have been government nominees.
The Standing Committee recom-
mended a four-member selection
committee comprising the Prime
Minister, the Speaker of the Lok
Sabha, the Chief Justice of India
(CJI), an eminent Indian nominated
unanimously by the Comptroller and
Auditor General (CAG), the Chief
Election Commissioner (CEC) and
the Chairman of the Union Public
Service Commission (UPSC), and the
Leader of the Opposition in the Lok
Sabha. The December Bill proposes
five members, of whom three should
be government nominees – the
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Prime Minister, the Speaker, the says, shall refer a preliminary in- case for preliminary inquiry to the
Leader of the Opposition in the Lok quiry against Group A, B, C and D CBI (other than Group A, B, C and D
Sabha – and the CJI or a judge of the employees to the Central Vigilance officers). The Bill also provides that
Supreme Court nominated by the CJI, Commission (CVC). The Bill further the Lokpal shall exercise general
and one eminent jurist nominated by says that after conducting the in- superintendence over the CBI (simi-
the President. Had the government quiry, the CVC shall submit a report lar to the CVC's supervision cur-
accepted the Standing Committee's to the Lokpal in the case of Group A rently). These additional dilutions in
recommendation, it could have and B employees and proceed ac- the later Bill, according to critics,
dented somewhat the opposition's cording to specified procedure in the reduce the Lokpal to just a post of-
criticism. case of Group C and D staff. The fice.
CVC, according to the current Bill,
Though the Bill kept the CBI with the shall send periodic reports to the The committee recommended that
government, it allowed the Lokpal to Lokpal on its cases. the Lokpal conduct only the prelimi-
have its own anti-corruption inves- nary inquiry and that it be authorised
tigative body. It eliminated the need The Rajya Sabha witnessed a sordid to initiate it suo motu. In such cases,
to get prior sanction for investiga- drama. Several parties which had the inquiry would have to be done
tion from the government. It provided walked out in the Lok Sabha (the by a five-member Lokpal Bench that
for the confiscation of the assets of Samajwadi Party and the Bahujan is not connected with the suo motu
corrupt public servants and the re- Samaj Party) or had not moved any initiation. More important, the ac-
covery of losses caused by their acts amendments there (the Trinamool cused would not get an opportunity
of corruption from them. But it cre- Congress) moved amendments in to be heard at this stage, though the
ated a terribly cumbersome proce- the Rajya Sabha and their represen- Bill of August allowed that. The later
dure for investigation, by which a tatives delivered fiery speeches op- Bill rejects both these recommenda-
preliminary inquiry and hearing of posing the provisions of the Bill. tions and sticks to the August ver-
the corrupt public servant were made When it became clear that at least sion, which provided that the Lokpal
compulsory before investigation three of the amendments (those re- could initiate an inquiry only on the
could begin. This ended the possi- lating to the selection and removal basis of a complaint by a citizen. The
bility of making surprise raids and of Lokpal members, the CBI being only concession the Bill makes is that
seizures on the premises of corrupt brought under the administrative the Lokpal shall have its own inquiry
public servants or their abettors. The control of the Lokpal, and the dele- wing to conduct a preliminary in-
Bill of August provided that the tion of the chapter on Lokayuktas in quiry on a complaint it has received
Lokpal would have its own investi- the States) were likely to be passed, and has decided can be inquired
gation and prosecution wings. The the government engineered distur- into.
Standing Committee, however, bances in the House, resorted to fili-
sought to dilute this by recommend- bustering and prevented the amend- Under Article 252 or 253
ing instead that the Lokpal conduct ments from being voted upon. And
a preliminary inquiry, after which the the House was prorogued with the Some parties questioned that lokpal
Central Bureau of Investigation Bill hanging in the air.The drama in bill should be brought under article
(CBI) would investigate. Also, the the Rajya Sabha showed that the 253 & not under article 252.
CBI would have autonomy over its government was not even willing to Article 252: Article 252. Power of
investigation. go by the will of Parliament. This Parliament to legislate for two or
gives rise to fundamental questions more States by consent and adop-
The committee also proposed that about the functioning of Indian de- tion of such legislation by any other
the Lokpal will have a supervisory mocracy. State
role over the CBI in cases relating The Bill adds that if a prima facie (1) If it appears to the Legislatures
to Group A and B officers. The Bill case exists against a public servant, of two or more States to be desir-
of December further diluted these the Lokpal may refer it to the CBI for able that any of the matters with
recommendations. The Lokpal, it investigation. Also, it may refer a respect to which Parliament has no

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power to make laws for the States
except as provided in Articles 249
and 250 should be regulated in such
States by Parliament by law, and if
resolutions to that effect are passed
by all the House of the Legislatures
of those States, it shall be lawful for
Parliament to pass an Act for regu-
lating that matter accordingly, and
any Act so passed shall apply to
such States and to any other State
by which it is adopted afterwards by
resolution passed in that behalf by
the House or, where there are two
Houses, by each of the Houses of
the Legislature of that State.
(2) Any Act so passed by Parliament
may be amended or repealed by an
Act of Parliament passed or adopted
in like manner but shall not, as re-
spects any State to which it applies,
be amended or repealed by an Act
of the Legislature of that State
Article 253: Article 253. Legislation
for giving effect to international
agreements Notwithstanding any-
thing in the foregoing provisions of
this Chapter, Parliament has power
to make any law for the whole or any
part of the territory of India for
implementing any treaty, agreement
or convention with any other coun-
try or countries or any decision made
at any international conference, as-
sociation or other body.
Relation between Union and States
The relation between Union and
States is the very bedrock of the In-
dian Federal system. India is a fed-
eral State with a national govern-
ment and a government of each con-
stituent state. Although the structure
of India is federal in a general way,
yet there are certain aspects that are
unique to federalism as practiced in
India. The Indian government fol-
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lows a strong central bias. Notices for 187 Amend-
Some of the special features of In- ments in Rajya Sabha
dia are as follows:
Agreement between the States: If
Notice had been given for as many
two states agree that the Parliament
as 187 amendments to the Lokpal
can legally make laws with respect
and Lokayukta Bill, 2011 including
to the two states, then the Parlia-
from the Trinamool Congress for
ment can make laws relating to any
deletion of the entire Part III of the
law or set of laws related to the State
Bill regarding establishment of the
Laws. This is an extension of the Par-
Lokayuktas. The Biju Janata Dal and
liamentary legislative as laid down
the Shiromani Akali Dal too had given
by the Article 252 of the Indian Con-
similar notices. By afternoon, the
stitution.
Rajya Sabha had received 173
amendment notices. The number
Implementation of Treaties: The
swelled to 187 by evening as an-
Parliament makes laws for the
nounced by the Minister of State for
implementation of treaties, even if
Personnel V. Narayanasamy. Nor-
the subject falls under the legisla-
mally notices are taken 24 hours in
tive power of the State, for the big-
advance but on Thursday, notices
ger international interest of the
were accepted till late evening, while
country. This power has been given
the government took the stand in the
to the Union by the Article 253.
House that there were too many
amendments which “needed consid-
Suggested Amendments: Team
eration.”
Anna had suggested 34 amendments
to rectify the government's Bill, and
Among major amendments were the
pointed out that four of these were
ones given by the Bharatiya Janata
critical to making the Lokpal a work-
Party for deletion of words “not less
able institution. These were that the
than” 50 per cent of members of
selection and removal procedure
Lokpal belonging to Scheduled
should be made independent of the
Castes, Scheduled tribes, Other
government; the CBI should be
Backward Classes, Minorities and
brought under the Lokpal's admin-
Women in Clause 3. They also asked
istrative control or, alternatively, the
for deletion of the word ‘Minorities'
Lokpal should have its own investi-
in Clause 3 and inclusion of Leader
gative body; all government ser-
of Opposition in Rajya Sabha on Se-
vants should be brought under the
lection Committee in Clause 4. They
Lokpal's investigative ambit; and the
also wanted Lokpal to appoint his
procedure for investigation should
secretary and not select from a
be in line with the normal criminal
panel given by the government.
investigation procedure. But the gov-
ernment was adamant in not ac-
The Communist Party of India (Marx-
cepting any of these either, and
ist) gave amendment for replace-
went on to bulldoze the passage of
ment of eminent jurist on the Selec-
its Bill. It rejected all the amend-
tion Committee with “an eminent
ments moved by the Opposition in
person to be nominated by the Chief
the Lower House.
Election Commissioner, Comptroller
and Auditor General and Union Pub-
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 UPSCPORTAL Current Affairs : http://upscportal.com/civilservices/current-affairs
lic Service Commission. They also
wanted the Inquiry Wing under the
Lokpal to be replaced by “Investiga-
tion Wing” with the Central govern-
ment providing officers and staff
under exclusive jurisdiction of the
Lokpal as decided in consultation
with the Lokpal. The Party gave an-
other amendment for inclusion un-
der the Lokpal of “any corporate
body, its promoters, its officers in-
cluding Director against whom there
is a complaint of corruption in rela-
tion to grant of government licence,
lease, contract, agreement or any
other action to influence govern-
ment policy through corrupt means.”
They wanted Lokpal to take suo
motu action in a compliant of cor-
ruption.
Other Angle
Passing of “Lokpal” Bill seems quite
an impossible task,because every
party to it has its interest.The UPA
government summarily “check-
mated” the social activists and
drove them into existential crisis
while simultaneously reducing the
Lokpal bill to a maere a game tool.
At the moment, the activists will be
happier with the “no bill at all” than
the current version of the bill tabled
by the government. None of the po-
litical parties wants the Lokpal bill.
Even if individual politicians want it,
they can’t do a thing about it be-
cause their “High Command” does
not want it. But the country’s future
is at stake. The politicians are out
to maintain the status-quo in order
to protect their corrupt practices and
ill-gotten wealth. But Team Anna
has accepted this mission and is not
going to relent until their goals are
met. Team Anna rallied the masses
and raised hopes of a utopian tomor-
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row - one with a clean and indepen- ness in W. Bengal. But at present,
dent CBI under an incorruptible everything she does is to extract the
Lokpal. But after an entire year of maximum from the Congress.
wrangling with the government.
Conclusion
Meanwhile, the elections in UP are
round the corner, and the Congress India’s politicians again stand dis-
has been expanding its reach with credited in the eyes of people, who
some crafty electoral mathematics, are asking questions to which the
a specialization offered at the politicians, both the ruling party and
Allahabad University. Ajit Singh is the opposition, do not have an an-
already in the bag. He was traded swer. If we truly want to make India
the lucrative civil aviation ministry corruption free we need to look at
in return for joining the Congress the new generation. Yes the govern-
electoral alliance in UP. Likewise, thement can help — first by cleaning
Railway Ministry is being “dangled” up their administration and then by
in front of Mulayam Singh Yadav of punishing corrupt people so severely
the SP. Doing well in the UP elections that punishment becomes a deter-
will surely serve as a shot in the arm rent to corruption. The government
for the Congress. First, it might can support and reward honesty —
cause a mental breakdown for reward people who pay taxes in-
Mayawati, especially after the elec- stead of harassing them and go af-
tion commission decided to cover ter the people who do not pay taxes
her statues across the state. Sec- and yet lead opulent lives. Reward-
ondly, it sets the stage for Rahul ing honesty and penalising dishon-
Gandhi’s coronation as the PM. Be- esty will create an ecosystem that
sides, it will also give the Congress supports a life of integrity. Let the
greater leverage against Didi. honest man be privileged and ac-
knowledged so that people aspire to
On the other side of this pitched be honest.
battle is the opportunistic BJP, which
recently threw open its gates for We need to target schools and col-
Mayawati discards in UP. In contrast, leges; motivate the youngsters to
the same BJP passed a strong take charge so that they can start
Lokayutkha bill in Uttarkhand. The changing the world around them. We
BJP’s goal is simple - stall the bill, have to stop paying the cop for traf-
harp on the government’s incompe- fic offences, and we have to have
tence, and cash in on the general dis- the will to fight each time a bribe is
content in the country, in hope of asked of us. The people of India need
riding an anti-corruption wave to get the media now — the media that
back in power. The battle lines are catapulted the movement to fame
drawn. On one side is the Congress needs to open an action line where
party and its fickle, calculative al- every act of corruption can be re-
lies. The leading trouble-maker ported and exposed. Because this
among the allies is the TMC. The battle can be won, this change can
Congress needs her now and she be made and we do not need regu-
knows that. Her primary long-term lation to do so.
goal is to put the CPI(M) out of busi-
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LOKPAL BILL
The word Lokpal means an ombudsman in India. The word has been
derived from the Sanskrit words "loka" (people) and "pala" (protector/
caretaker). So the word Lokpal means 'protector of people'. The con-
cept of Lokpal has been drawn up to root out corruption at all levels in
the prevailing Indian polity.

The Lokpal will be a three-member body with a chairperson who is or

was a chief justice or Supreme Court judge, and two members who are
or have been high courts judges or chief justices.Implementation of
the Lokpal bill will hopefully reduce corruption in India. The basic
idea of the Lok Pal is borrowed from the office of ombudsman, which
has played an effective role in checking corruption and wrong-doing in Scandinavian and other nations.
In early 1960s, mounting corruption in public administration set the winds blowing in favour of an
Ombudsman in India too.

The Administrative Reforms Commission (ARC) set up in 1966 recommended the constitution of a
two-tier machinery - of a Lokpal at the Centre, and Lokayukta(s) in the states.the Lokpal has to com-
plete the inquiry within six months.

Duties of Lokpal are as follows:

1. To judge the cases and make jurisdictions against corruption cases with the Lokpal.
2. To judge whether a case is legal or whether a fake complaint has been made.
3. To potentially impose fines on a fake complaint, or even a short span of jail time, if the case is not
proved to be legally true.

In India, the Jan Lokpal Bill (also referred to as the citizens' ombudsman bill) is a proposed anti-
corruption law designed to effectively deter corruption, redress grievances and protect whistleblowers.
The law would create an ombudsman called the Lokpal; this would be an independent body similar to
the Election Commission of India with the power to prosecute politicians and bureaucrats without prior
government permission.

A compromise bill, merging the Government's version and that of the civil group's version (Jan Lokpal),
is being drafted by a committee of five Cabinet Ministers and five social activists. As of July 2011, the
most current version of the bill is version 2.3, according to the government website. For 42 years, the
government-drafted bill has failed to pass the Rajya Sabha, the upper house of the Parliament of India.The
first Lokpal Bill was passed in the 4th Lok Sabha, the lower house of the Parliament, in 1969 but stalled
in the Rajya Sabha. Subsequent Lokpal bills were introduced in 1971, 1977, 1985, 1989, 1996, 1998,
2001, 2005 and 2008 but all failed to pass.

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UPSCPORTAL Current Affairs : http://upscportal.com/civilservices/current-affairs
Latest Developments
Anna Hazare, a Gandhian rights activist, had
started a fast unto death at Jantar Mantar in New
Delhi demanding the passing of the bill. Hazare
called off his hunger strike on the 9th of April,
2011 bringing to an end his 98-hour protest after
the government issued a gazette notification con-
stituting a 10-member Joint Committee of govern-
ment ministers and civil society activists, includ-
ing him, to draft a bill for the creation of an effec-
tive Lokpal.
Drafting Committee
The drafting committee was officially formed on
8 April 2011. It consists of ten members, includ-
ing five from the government and five drawn from
society.
Chairmen
The Government of India accepted that the com-
mittee be co-chaired by a politician and an activ-
ist, non-politician. It is reported that Pranab
Mukherjee, from the political arena, and Shanti
Bhushan, from civil society, will fill those roles.
Government representation (Five Cabinet min-
isters )They are:
» Pranab Mukherjee, Finance Minister, Co-Chair-
man;
» P. Chidambaram, Minister of Home Affairs;
» Veerappa Moily, Minister of Law and Justice;
» Kapil Sibal, Minister for Communications and
Information Technology; and
» Salman Khursid, Minister of Water Resources.
Civil society representation (Five leading social
activists). They are:
» Shanti Bhushan, Former Minister of Law and
Justice, Co-Chairman;
» Anna Hazare, Social Activist;
» Prashant Bhushan, Lawyer;
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» N. Santosh Hegde, Lokayukta (Karnataka); and
» Arvind Kejriwal.
Thousands of people from all over India, especially
the youth, supported Anna Hazare's cause by candle
light marches and online campaigns through so-
cial media.Recently Yoga guru, Swami Ramdev,
was on a fast for this cause for 9 consecutive days
from 4 June - 12 June 2011. He wanted the Gov-
ernment of India to accept various demands which
mainly included those related to the Lokpall
bill.Anna Hazare on the 8th of June, 2011, declared
that he will restart his fast unto death on the 16th
of August if the Lokpal bill is not passed by the
Parliament of India by 15 August, which is the
Inependence Day of India.On the 16th of June, the
civil society reported that only 15 points of total
71 that they recommended have been agreed to by
the Joint Committee consisting of five central min-
isters. Following differences with the Civil Soci-
ety, the team of five central ministers decided to
forward two drafts of the Lokpal Bill to the Cabi-
net, one from each side.
The Jan Lokpal Bill (Citizen's ombudsman Bill)
is a draft anti-corruption bill drawn up by promi-
nent civil society activists seeking the appointment
of a Jan Lokpal, an independent body that would
investigate corruption cases, complete the inves-
tigation within a year and envisages trial in the
case getting over in the next one year. Drafted by
Justice Santosh Hegde (former Supreme Court
Judge and present Lokayukta of Karnataka),
Prashant Bhushan (Supreme Court Lawyer) and
Arvind Kejriwal (RTI activist), the draft Bill en-
visages a system where a corrupt person found
guilty would go to jail within two years of the com-
plaint being made and his ill-gotten wealth being
confiscated. It also seeks power to the Jan Lokpal
to prosecute politicians and bureaucrats without
government permission.
Salient features of Jan Lokpal Bill:
1. An institution called LOKPAL at the centre and
LOKAYUKTA in each state will be set up.
2. Like Supreme Court and Election Commission,
UPSCPORTAL Current Affairs : http://upscportal.com/civilservices/current-affairs
they will be completely independent of the gov-
ernments. No minister or bureaucrat will be able
to influence their investigations.
3. Cases against corrupt people will not linger on
for years anymore: Investigations in any case will
have to be completed in one year. Trial should be
completed in next one year so that the corrupt poli-
tician, officer or judge is sent to jail within two
years.
4. The loss that a corrupt person caused to the gov-
ernment will be recovered at the time of
conviction.
5. How will it help a common citizen: If any work
of any citizen is not done in prescribed time in any
government office, Lokpal will impose financial
penalty on guilty officers, which will be given as
compensation to the complainant.
6. So, you could approach Lokpal if your ration
card or passport or voter card is not being made
or if police is not registering your case or any other
work is not being done in prescribed time.
Lokpal will have to get it done in a month's time.
You could also report any case of corruption to
Lokpal like ration being siphoned off, poor qual-
ity roads been constructed or panchayat funds be-
ing siphoned off. Lokpal will have to complete its
investigations in a year, trial will be over in next
one year and the guilty will go to jail within two
years.
7. But won't the government appoint corrupt and
weak people as Lokpal members? That won't be
possible because its members will be selected by
judges, citizens and constitutional authorities and
not by politicians, through a completely transpar-
ent and participatory process.
8. What if some officer in Lokpal becomes cor-
rupt? The entire functioning of Lokpal/ Lokayukta
will be completely transparent. Any complaint
against any officer of Lokpal shall be investigated
and the officer dismissed within two months.
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9. What will happen to existing anti-corruption
agencies? CVC, departmental vigilance and anti-
corruption branch of CBI will be merged into
Lokpal. Lokpal will have complete powers and
machinery to independently investigate and pros-
ecute any officer, judge or politician.
10. It will be the duty of the Lokpal to provide
protection to those who are being victimized for
raising their voice against corruption.
Some people have opined that the Jan Lokpal Bill
is 'Naïve' in its approach to combating corruption.
The Lokpal concept was criticized by the Human
Resource Development (HRD) minister Kapil
Sibal because of concerns that it will lack account-
ability, oppresively, and undemocratically.The
claim that the Lokpal will be an extra-constitu-
tional body has been derided by Hazare’s closest
lieutenant, Arvind Kejriwal. He states the Jan
Lokpal Bill drafted by civil society will only in-
vestigate corruption offences and submit a charge
sheet which would then tried and prosecuted,
through trial courts and higher courts. Kejriwal
further states that the proposed bill also lists clear
provisions in which the Supreme Court can abol-
ish the Lokpal.Although Kejriwal has stated that
all prosecutions will be carried out through trial
courts, the exact judicial powers of LokPal is rather
unclear in comparison with its investigative pow-
ers.
The bill requires "...members of Lokpal and the
officers in investigation wing of Lokpal shall be
deemed to be police officers". Although some sup-
porters have denied any judicial powers of
Lokpal,the government and some critics have rec-
ognized Lokpal to have quasi-judicial powers.The
bill states that "Lokpal shall have, and exercise the
same jurisdiction powers and authority in respect
of contempt of itself as a High court has and may
exercise, and, for this purpose, the provisions of
the Contempt of ourts Act, 1971 (Central Act 70
of 1971) shall have the effect subject to the modi-
fication that the ref rences therein to the High Court
shall be construed as including a reference to the
Lokpal." Review of proceedings and decisions by
UPSCPORTAL Current Affairs : http://upscportal.com/civilservices/current-affairs

Lokpal is prevented in the bill, stating "...no proceedings or decision of the Lokpal shall be liable to be
challenged, reviewed, quashed or called in question in any court of ordinary Civil Jurisdiction." With-
out judicial review, there is concern that Lokpal could become a extra-constitutional body with inves-
tigative and judicial powers whose decisions cannot be reviewed in regular courts.

Whether or not to include the Prime Minister and higher judiciary under the Lokpal remains as one of
the major issues of dispute. Although Hazare proposed Justice Verma, the former Chief Justice of the
Supreme Court, as the Chairman of the Lokpal Bill panel,Justice Verma later expressed his constitu-
tional objections for including the Prime Minister and higher judiciary under Lokpal, stating "this
would foul with the basic structure of the constitution".

Difference Between Draft Lokpal Bill 2010 and Jan Lokpal Bill
Jan Lokpal Bill
Draft Lokpal Bill (2010) (Citizen's Ombudsman Bill)

» Lokpal will have no power to initiate suo motu » Lokpal will have powers to initiate suo
action or receive complaints of corruption from moto action or receive complaints of corrup-
the general public. It can only probe. tion from the general public.

» Complaints forwarded by the Speaker of the » Lokpal will have the power to initiate
Lok Sabha or the Chairman of the Rajya Sabha. prosecution of anyone found guilty.

» Lokpal will only be an Advisory Body with a » Lokpal will have police powers as well as
role limited to forwarding reports to a "Compe- the ability to register FIRs.
tent Authority".
» Lokpal and the anti corruption wing of the
» Lokpal will have no police powers and no abil- CBI will be one independent body.
ity to register an First Information Report or pro-
ceed with criminal investigations. » Punishments will be a minimum of 5 years
and a maximum of up to life imprisonment.
» The CBI and Lokpal will be unconnected.
» Punishment for corruption will be a minimum
of 6 months and a maximum of up to 7 years.

India is a country where honesty and integrity in public and private life have been glorified andupheld
in great epics such as the Vedas, Upanishads and in the books and practices of everyreligion practiced
here.Yet, India today is one of the most corrupt countries in the world.Bringing public servants under a
scanner which makes them strictly accountable is the start of amovement against corruption in India.
And one significant step in attacking the spectre ofcorruption in India will be the implementation of the
lok pal bill.

In the regular dispensation of government there are implicit and explicit ways that citizens canvoice
their grievances and demand change. But these are often difficult. Within administrative departments,
for example, any decision of one official can be appealed to a higher official, all the way up to the head

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UPSCPORTAL Current Affairs : http://upscportal.com/civilservices/current-affairs

of a department. However, this mechanism has inherent flaws.But it can be said that Lokpal is the need
of the hour and it will have to be implemented first ,then only we can decide whether it is fruitful or not.

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UPSCPORTAL Current Affairs : http://upscportal.com/civilservices/current-affairs
Causes & Cure
Controversy continues to sur-
round the death of 29-year-old
Mark Duggan in north London
on Thursday evening. His shoot-
ing at the hands of police while
he was travelling in a taxi cab
sparked rioting and looting in
Tottenham on Saturday. The unrest subsequently
spread across London and other parts of the UK in
what police have described as copycat attacks. Of-
ficers from Operation Trident the Metropolitan Po-
lice unit that deals with gun crime in London's black
communities stopped the cab Duggan was travel-
ling in during a pre-planned operation. Duggan died
of a single gunshot wound to the chest, an inquest at
north London Coroner's Court heard on Tuesday.The
fact that a bullet had lodged in a police radio worn
by an officer at the scene, raising speculation he might
have been fired at from the vehicle. A non-police is-
sue handgun was also recovered at the scene where
Duggan was shot dead, the IPCC said. However, a
report said that initial tests by the National Ballis-
tics Intelligence Service on the bullet found lodged
in the police radio suggested that the bullet fragments
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were from police-issue ammunition, meaning they
could not have been from a weapon fired by Duggan,
casting doubt on claims that he was killed in an ex-
change of gunfire. 120 people, including members of
Duggan's family and community workers, marched
to Tottenham police station in north London, only a
short distance from the scene of the shooting.The
march was peaceful according to reports, with pro-
testers calling for "justice" and an investigation. Lo-
cal roads were closed and traffic diverted.
What sparked the rioting is still unclear but police
said that certain elements, who were not involved
with the vigil, took the opportunity to commit disor-
der and physically attack police officers, verbally
abuse fire brigade personnel and destroy vehicles and
buildings. "Police say the subsequent riots in other
parts of London and the UK are copycat events that
have little or nothing to do with the death of Duggan.
Rioting had taken place in several London locations,
including Battersea in south London, Ealing in the
west and Hackney in east London. Disturbances were
also reported in Birmingham in central England,
Bristol in the southwest and Liverpool in northwest
3
UPSCPORTAL Current Affairs : http://upscportal.com/civilservices/current-affairs
England.Rioting and looting was reported from sev-
eral other parts of London, including Brixton in south
London, Enfield in north London and Oxford Street
in central London, the capital's main shopping dis-
trict. Yet the riots we are seeing now are fundamen-
tally different from those that have gone before. They
might, ostensibly, have been triggered by the police
shooting of Mark Duggan, a notorious gangster, in
north London; but they are fuelled by pure greed, by
a belief that something can be had for nothing. The
usual brakes on such behaviour – either an apprecia-
tion that it is wrong, or by the prospect that the cul-
prit will be caught and punished – are largely absent.
The police introduced special powers in four areas of
London -- Lambeth, Haringey, Enfield and Waltham
Forest -- allowing stop and search without reason-
able suspicion in a bid to keep rioters off the streets.In
theory, parliament could invoke powers to implement
curfews, use water canons or even call in the armed
forces.However, senior politicians and police offic-
ers have said that these options are unlikely to be used
unless the situation got significantly worse.The gov-
ernment has yet to respond, most of them are sunning
themselves on beaches across the globe but the Prime
Minister doubtless to promise terrible retribution be
visited upon those caught rioting. He will also say
that there is no excuse for rioting or stealing and he
will set up an ‘enquiry’ which will doubtless be headed
by somebody who has never been unemployed, lived
on a squalid council estate. They will cite poverty
and unemployment but will not accept that immi-
gration has played any part or that ill-discipline in
schools and indeed in many homes has any baring.
They will not accept that reducing the role of moth-
erhood to something to be fitted around work has
caused havoc in society for these people by and large
have their own agenda which has the unfortunate pit-
fall of being utterly un-costed. Printing money and
handing it out for free would not solve the problems
faced.
Epithets like “rabble” or “riff-raff” are too mild for
the lawless, feckless, mindless and amoral thugs who
forced passers-by to strip naked while they stole their
clothes; or who torched a furniture warehouse that
had withstood the Blitz; or who ransacked shops
across London. But the question is what is the root
cause behind this ruthless and nonsensical riots. The
‘causes’ are many and varied. They certainly include
the failure of successive governments to more fairly
distribute the nations wealth and the draconian mea-
sures being taken to cut the social security budget,
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but they also include the interpretation of womens
rights, the willingness of governments to allow ‘fac-
tory fodder’ to be imported because business sector
insists on paying salaries so low that governments
have to top up those wages simply in order to ensure
people can live and the ill-discipline of generations
of ‘latch key’ children. Of course not all such kids are
rioting and not all rioters are unemployed but it is
the atmosphere created which leads to these problems.
It is of course no coincidence that Mr.cameroon’s very
philosophy is to reduce the role of the state, meaning
that assistance is harder to get and takes longer to
get.
They appear to believe that social safety nets can be
fixed on the cheap but if the rioters believe that their
actions will change this philosophy they are deluded.
The solution must lie in long term if not life long
employment being found for the people which pays
well and includes provision for both health care and
old age. This will involve a deal of planning from the
cradle to the grave but the alternative, to leave people
increasingly to their own devices is surely not an op-
tion? Such a massive undertaking would require
change in all sectors of the community.
We must distribute wealth more evenly and we can-
not continue to refuse to use legislation to make it
happen. Of course many business people will tell you
that they would be forced to move abroad in such cir-
cumstances but the time has come to treat such threats
as what they are – unpatriotic and based on greed.They
must also stop all immigration immediately. This is
not a racial point or one of human rights. The truth is
that the population is already too big for a nation of
their size to sustain both moves to tackle serious dep-
rivation and support further immigration – our ser-
vices cannot stretch to it. Perhaps in the future Brit-
ain may once more be in a position to offer safety and
solace to those less fortunate, but at this juncture in
they cannot continue to countenance such ideas.
Attitudes on all sides then must change but sadly there
is little sign of compromise. The ‘camps’ are set up,
lines are drawn, those who have intend to keep and
those who have not intend to take from those who
have, it is a spiral which can only lead to greater and
greater unrest. My consolation is my age which may
prevent me from having to witness the culmination
of this madness but I also hope against hope that some-
body will emerge with the power and the vision to
drag us back from the abyss. As yet he/she are keep-
ing their own counsel but you never know.
4
UPSCPORTAL Current Affairs : http://upscportal.com/civilservices/current-affairs

If ever we wanted proof that Britain has been divided into two nations, then here it was. But hasn’t it always
been? You did not need to look far beneath the surface at any time over the past 200 years or more to find
people ready to loot and rob and steal. After all, the London mob is hardly a new phenomenon. The word
itself was coined in the late 17th century as the city’s population grew and aggressive crowds, fuelled by
alcohol and perceived grievance, took to the streets with alarming regularity.

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5
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Nuclear Power in India
Future Enery Source for Development
“When the agreement goes
through, India is expected to gen-
erate an additional 25,000 MW of
nuclear power by 2020, bringing
total estimated nuclear power
generation to 45,000 MW.”
Nuclear power is the fourth-largest source of elec-
tricity in India after thermal, hydro and renew-
able sources of electricity. As of 2010, India has 19
nuclear power plants in operation generating 4,560
MW while 4 other are under construction and are
expected to generate an additional 2,720 MW. In-
dia is also involved in the development of fusion
reactors through its participation in the ITER
project.
Since early 1990s, Russia has been a major source
of nuclear fuel to India. Due to dwindling domes-
tic uranium reserves, electricity generation from
nuclear power in India declined by 12.83% from
2006 to 2008. Following a waiver from the Nuclear
Suppliers Group in September 2008 which allowed
it to commence international nuclear trade, India
has signed nuclear deals with several other coun-
tries including France, United States, United King-
dom, Canada, Namibia, Mongolia, Argentina,
Kazakhstan In February 2009, India also signed a
$700 million deal with Russia for the supply of 2000
tons nuclear fuel.
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By: Ram Kumar Pandey
India now envisages to increase the contribution
of nuclear power to overall electricity generation
capacity from 4.2% to 9% within 25 years. In 2010,
India's installed nuclear power generation capac-
ity will increase to 6,000 MW. As of 2009, India
stands 9th in the world in terms of number of op-
erational nuclear power reactors and is construct-
ing 9 more, including two EPRs being constructed
by France's Areva. Indigenous atomic reactors in-
clude TAPS-3, and -4, both of which are 540 MW
reactors. India's $717 million fast breeder reactor
project is expected to be operational by 2010.
Nuclear Power Growth
in India
India, being a non-signatory of the Nuclear Non-
Proliferation Treaty, has been subjected to a defacto
nuclear embargo from members of the Nuclear
Suppliers Group (NSG) cartel. This has prevented
India from obtaining commercial nuclear fuel,
nuclear power plant components and services from
the international market, thereby forcing India to
develop its own fuel, components and services for
nuclear power generation. The NSG embargo has
had both negative and positive consequences for
India's Nuclear Industry.
On one hand, the NSG regime has constrained In-
dia from freely importing nuclear fuel at the vol-
ume and cost levels it would like to support the
country's goals of expanding its nuclear power gen-
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eration capacity to at least 20,000 MW by 2020. Also, by precluding India from taking advantage of the
economies of scale and safety innovations of the global nuclear industry, the NSG regime has driven up the
capital and operating costs and damaged the achievable safety potential of Indian nuclear power plants.

On the other hand, the NSG embargo has forced the Indian government and bureaucracy to support and
actively fund the development of Indian nuclear technologies and industrial capacities in all key areas
required to create and maintain a domestic nuclear industry. This has resulted in the creation of a large
pool of nuclear scientists, engineers and technicians that have developed new and unique innovations in
the areas of Fast Breeder Reactors, Thermal Breeder Reactors, the Thorium fuel cycle, nuclear fuel repro-
cessing and Tritium extraction & production.

Ironically, had the NSG sanctions not been in place, it would have been far more cost effective for India to
import foreign nuclear power plants and nuclear fuels than to fund the development of Indian nuclear
power generation technology, building of India's own nuclear reactors, and the development of domestic
uranium mining, milling and refining capacity.

The Indian nuclear power industry is expected to undergo a significant expansion in the coming years
thanks in part to the passing of The Indo-US nuclear deal. This agreement will allow India to carry out
trade of nuclear fuel and technologies with other countries and significantly enhance its power generation
capacity. when the agreement goes through, India is expected to generate an additional 25,000 MW of
nuclear power by 2020, bringing total estimated nuclear power generation to 45,000 MW.

India has already been using imported enriched uranium and are currently under International Atomic
Energy Agency (IAEA) safeguards, but it has developed various aspects of the nuclear fuel cycle to support
its reactors. Development of select technologies has been strongly affected by limited imports. Use of
heavy water reactors has been particularly attractive for the nation because it allows Uranium to be burnt
with little to no enrichment capabilities.

India has also done a great amount of work in the development of a Thorium centered fuel cycle. While
Uranium deposits in the nation are limited there are much greater reserves of Thorium and it could pro-
vide hundreds of times the energy with the same mass of fuel. The fact that Thorium can theoretically be
utilized in heavy water reactors has tied the development of the two. A prototype reactor that would burn
Uranium-Plutonium fuel while irradiating a Thorium blanket is under construction at the Madras/
Kalpakkam Atomic Power Station.

Uranium used for the weapons program has been separate from the power program, using Uranium from
indigenous reserves. This domestic reserve of 80,000 to 112,000 tons of uranium (approx 1% of global
uranium reserves) is large enough to supply all of India's commercial and military reactors as well as supply
all the needs of India's nuclear weapons arsenal. Currently, India's nuclear power reactors consume, at
most, 478 metric tonnes of uranium per year. Even if India were quadruple its nuclear power output (and
reactor base) to 20GW by 2020, nuclear power generation would only consume 2000 metric tonnes of
uranium per annum.

Based on India's known commercially viable reserves of 80,000 to 112,000 tons of uranium, this represents
a 40 to 50 years uranium supply for India's nuclear power reactors (note with reprocessing and breeder
reactor technology, this supply could be stretched out many times over). Furthermore, the uranium re-
quirements of India's Nuclear Arsenal are only a fifteenth (1/15) of that required for power generation
(approx. 32 tonnes), meaning that India's domestic fissile material supply is more than enough to meet all

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needs for it strategic nuclear arsenal. Therefore, India has sufficient uranium resources to meet its strategic
and power requirements for the foreseeable future.

Nuclear Power Plants

Currently, nineteen nuclear power reactors produce 4,560.00 MW (2.9% of total installed base).

The projects under construction are:

Atomic Energy Commission of India

The Atomic Energy Commission is a governing body functioning under the Department of Atomic Energy
(DAE), Government of India. The DAE is under the direct charge of the Prime Minister. The Indian
Atomic Energy Commission was first set up in August 1948 in the then Department of Scientific Research,
which was created a few months earlier in June 1948. The Department of Atomic Energy (DAE) was set up
on August 3, 1954 under the direct charge of the Prime Minister through a Presidential Order. Subse-
quently, in accordance with a Government Resolution dated March 1, 1958, the Atomic Energy Commis-
sion (AEC) was established in the Department of Atomic Energy. The then Prime Minister, Pandit Jawaharlal
Nehru also laid a copy of this Resolution on the table of the Lok Sabha on March 24, 1958. Dr Homi
Jehangir Bhabha was the first chairman of the commission.

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According to the Resolution constituting the AEC,
the Secretary to the Government of India in the
Department of Atomic Energy is ex-officio Chair-
man of the Commission. The other Members of
the AEC are appointed for each calendar year on
the recommendation of the Chairman, AEC with
the approval of the Prime Minister.
Salient Milestones of
Atomic Energy in India
» March. 12, 1944 : Dr. Homi Jehangir Bhabha
writes to Sir Dorabji Tata Trust for starting Nuclear
Research in India
» December 19, 1945 : Tata Institute of Funda-
mental Research (TIFR) Mumbai is inaugurated.
» April 15, 1948 : Atomic Energy Act is passed
» August 10, 1948 : Atomic Energy Commission
is constituted
» July 29,1949 : Rare Minerals Survey Unit
brought under Atomic Energy Commission and
named as ‘Raw Materials Division’ (RMD), with
Headquarters at New Delhi. In 1958, this unit be-
comes Atomic Minerals Division (AMD), and later
in 1974, shifts to Hyderabad. It is renamed as
Atomic Minerals Directorate for Exploration and
Research (AMD) on July 29, 1998.
» August 18, 1950 : Indian Rare Earths Limited
(IRE), owned by the Government of India and Gov-
ernment of Travancore, Cochine, is set up for re-
covering minerals, processing of rare earths com-
pounds and Thorium - Uranium concentrates. In
1963, IRE becomes a full-fledged government un-
dertaking under DAE
» April 1951: Uranium Deposit at Jaduguda is dis-
covered by AMD. Drilling operations commence
in December 1951.
» December 24, 1952 : Rare Earths Plant of IRE
at Alwaye, Kerala, is dedicated to the nation and
production of Rare Earths & Thorium - Uranium
concentrate commences.
» August 03, 1954 : Department of Atomic En-
ergy is created.
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» August 01, 1955 : Thorium Plant at Trombay
goes into production. Thorium Plant at Trombay
is closed.
» 1956 : AMD discovers uranium mineralisation
at Umra, Rajasthan.
» August 04, 1956 :APSARA - first research re-
actor in Asia, attains criticality at Trombay,
Mumbai.
» January 20, 1957 : Atomic Energy Establish-
ment, Trombay (AEET) is inaugurated
» August 19, 1957 : AEET Training School starts
functioning at Trombay.
» January 30, 1959 :Uranium Metal Plant at
Trombay produces Uranium.
» February 19, 1960 : First lot of 10 Fuel Ele-
ments for CIRUS reactor, is fabricated at Trombay
» July 10, 1960 : CIRUS – the 40 MWt research
reactor, attains criticality. After its successful re-
furbishment, the reactor was dedicated to the Na-
tion on October 31, 2002.
» January 14, 1961 : Research Reactor ZERLINA
attains criticality. (It is decommissioned in 1983).
» 1965: IRE takes over operation of Mineral Pro-
cessing Unit at Manavalakurichi in Tamil Nadu and
at Chavara in Kerala.
» January 22, 1965 : Plutonium Plant is inaugu-
rated at Trombay.
» January 22, 1967 : AEET is named as Bhabha
Atomic Research Centre (BARC).
» April 11, 1967 : Electronics Corporation of In-
dia Limited (ECIL) is set up at Hyderabad for pro-
ducing electronic systems, instruments and com-
ponents.
» June 1, 1967 : Power Projects Engineering Di-
vision (PPED), Mumbai is formed. The Division is
subsequently converted to Nuclear Power Board
on August 17, 1984.
» October 4, 1967: Uranium Corporation of India
Limited (UCIL) is established with head quarters
at Jaduguda Mines in Jharkhand (then Bihar).
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» May 1968: Uranium Mill at Jaduguda, with a
capacity of 1,000 TPD, commences commercial
production of Magnesium diuranate (yellow cake).
Jaduguda Mine Shaft is commissioned in Novem-
ber 1968.
» December 31, 1968 : Nuclear Fuel Complex is
set up at Hyderabad, Andhra Pradesh.
» March 12, 1969 : Reactor Research Centre (RRC)
starts at Kalpakkam, Tamil Nadu. The Centre is
fully established in 1971. It is named as Indira
Gandhi Centre for Atomic Research (IGCAR) on
December 18, 1985.
» May 01, 1969 : Heavy Water Projects is consti-
tuted at Mumbai. This later becomes Heavy Wa-
ter Board.
» October 02, 1969 : Tarapur Atomic Power Sta-
tion starts commercial operation.
» 1970 : AMD hands over the Uranium Deposit at
Narwapahar to UCIL.
» September 06, 1970 : Uranium-233 is separated
from irradiated Thorium
» February 18, 1971 : Plutonium fuel for Research
Reactor PURNIMA-I is fabricated at Trombay.
» 1972 : AMD hands over the beach sand heavy
mineral deposits of Chhatrapur, Orissa and
Neendakara-Kayankulam, Kerala to IRE.
» February 3, 1972 : DAE Safety Review Com-
mittee is formed.
» May 18, 1972 : Research Reactor PURNIMA-I
attains criticality.
» November 30, 1972 : Unit-1 of Rajasthan
Atomic Power Station at Rawatbhatta, near Kota,
Rajasthan, begins commercial operation. Unit II
goes commercial on November 1, 1980.
» 1974: By-product Recovery Plant of UCIL at
Jaduguda is commissioned.
» May 18, 1974 : Peaceful underground Nuclear
Experiment is conducted at Pokhran, Rajasthan.
» March 1975 : Commercial production of Ura-
nium Mineral Concentrates from Copper plant tail-
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ings at Surda, Hindustan Copper Limited com-
menced.
» May 1975 : Commercial production of by-prod-
ucts - Molybdenum and Copper concentrates starts.
» September 1975 : Surda Uranium Recovery
Plant of UCIL is commissioned.
» June 16, 1977 : Variable Energy Cyclotron be-
comes operational at Kolkata.
» 1978 : High-sensitivity airborne spectrometric
and magnetometric surveys started.
» 1979 : AMD hands over Bhatin and Turamdih
(East) uranium deposits (now in Jharkhand State)
to UCIL.
» Nov 18, 1979 : Plutonium-Uranium Mixed Ox-
ide (MoX) fuel is fabricated at Trombay.
» November 19, 1982 : BARC's Power Reactor
Fuel Reprocessing Plant at Tarapur is commis-
sioned.
» 1983 : Fbtr attains first criticality.
» February 1983 : Rakha Uranium Recovery Plant
of UCIL is commissioned.
» November 15, 1983 : Atomic Energy Regula-
tory Board (AERB) in Mumbai is constituted.
» 1984 : Sandstone-type uranium deposit at
Domiasiat, Meghalaya is discovered.
» January 27, 1984 : Madras Atomic Power Sta-
tion - Unit I at Kalpakkam starts commercial op-
eration. Unit II goes commercial on March 21,
1986.
» February 19, 1984 : Centre for Advanced Tech-
nology (CAT) at Indore (Madhya Pradesh) is inau-
gurated.
» March 08, 1984 : Plutonium - Uranium mixed
Carbide Fuel for Fast Breeder Test Reactor (FBTR)
is fabricated at Trombay.
» May 10, 1984 : Research Reactor PURNIMA-
II, a Uranium-233 fuelled homogenous reactor,
attains criticality.
» 1985 : AMD hands over the Bodal uranium de-
posit to UCIL.
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» March 05, 1985 : Waste Immobilisation Plant
(WIP) at Tarapur is commissioned.
August 08, 1985 : Research Reactor DHRUVA (100
MWt) attains criticality. It attains full power on
January 17, 1988.
October 18, 1985 : FBTR at IGCAR attains criti-
cality.
» 1986 : Dredge Mining, Mineral Separation and
Synthetic Rutile Plant at OSCOM, Chhatrapur,
Orissa is commissioned by IRE. HERO Project at
Alwaye, Kerala, is commissioned. Production is
started at OSCOM.
» October 1986 : Bhatin Mine is commissioned
by UCIL and the ore is transported to Jaduguda
mill for processing.
» December 1986 : Mosaboni Uranium Recovery
Plant of UCIL is commissioned.
» 1987 : AMD hands over Turamdih (West) ura-
nium deposits to UCIL, and beach sand deposits in
Tamil Nadu to IRE.
» September 17, 1987 : Nuclear Power Corpora-
tion of India Limited (NPCIL) is formed by con-
verting the erstwhile Nuclear Power Board.
» 1988 : AMD hands over the Kuttumangalam
and Vettumadia sand deposits, Tamil Nadu to IRE.
» December 30, 1988 : 12 MV Pelletron Accel-
erator is inaugurated in Mumbai. The accelerator
is a joint endeavour of BARC & TIFR.
» 1989 : AMD Training School is inaugurated.
Board of Radiation and Isotope Technology (BRIT)
is constituted.
» January 3, 1989 : Regional Radiation Medicine
Centre (RRMC) is inaugurated at Kolkata.
» March 12, 1989 : Narora Atomic Power Station
Unit I attains criticality. Its Unit II attains critical-
ity on October 24, 1991.
» 1990 : Dolostone -hosted uranium mineralisation
in the western margin of Cuddapah basin is dis-
covered.
Mineral Research Development Centre (MRDC)
of IRE is launched at Kollam. HERO Plant is com-
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missioned at Alwaye. Dredge & Wet Concentra-
tor Plant at Chavara, Kerala, is commissioned.
» November 09, 1990 : Research Reactor
PURNIMA-III, a Uranium-233 fuelled reactor, at-
tains criticality.
» 1991: AMD discovers uranium mineralisation
at Lambapur, Nalgonda district, Andhra Pradesh
and produces upgraded xenotime concentrate at
‘Pre-concentrate Upgradation Plant’ (PUP) at
Kunkuri.
» May 16, 1991: First ECR heavy ion source of
the country becomes operational at the Variable
Energy Cyclotron Centre.
» 1992 : First remotely operated radiography cam-
era is launched. Significant heavy mineral concen-
tration along the East Coast, Andhra Pradesh, is
identified. New Thorium Plant at
OSCOM,Chhattrapur, Orissa is commissioned by
IRE.
» September 03, 1992 : Kakrapar Atomic Power
Station - Unit I attains criticality. Its Unit II at-
tains criticality on January 08, 1995
» 1993 : BARC supplies one millionth radioiso-
tope consignment.
» 1995 : Research Irradiator Gamma Chamber
5000 is launched by BRIT.
» January 1995 : Narwapahar mine is inaugurated.
» 1996 : 30kWt Kamini Reactor attains critical-
ity. The reactor is taken to full power in Septem-
ber, 1997.
» March 27, 1996 : Kalpakkam Reprocessing Plant
(KARP) is cold commissioned. KARP is dedicated
to the nation on September 15,1998.
» October 20, 1996 : Kalpakkam Mini Reactor
(KAMINI), with Uranium-233 fuel, attains criti-
cality at IGCAR, Tamilnadu.
» 1997 : AMD discovers of uranium mineralisation
in brecciated limestone at Gogi, Gulbarga district,
Karnataka in the Bhima basin. Microzir Plant is
commissioned in Chavra, Kerala.
» March. 31, 1997 : Rajasthan Atomic Power Sta-
tion Unit-1 is re-commissioned.
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» December 1997: Jaduguda Mill is expanded to
treat 2,090 tonnes ore per day. PRYNCE (95%
Neodymium Oxide) Plant is commissioned at Rare
Earths Division.
» May 11 & 13, 1998 : Five underground nuclear
tests are conducted at Pokhran Range, Rajasthan.
» May 27, 1998 : Rajasthan Atomic Power Sta-
tion Unit-2 is re-commissioned after enmasse re-
placement of coolant channels.
» August 10, 1998 : The 500 keV industrial elec-
tron accelerator developed indigenously by the
BARC is commissioned for its first phase of opera-
tion. Ammonium diuranate (ADU) production
commences at Rare Earths Division of IRE at
Alwaye, Kerala.
» April 22, 1999 : 450 MeV Synchrotron Radia-
tion Source Indus-1 achieves electron beam cur-
rent of 113 milli-ampere superceding the design
value of 100 milli-ampere.
» July 1999 : Solid Storage and Surveillance Facil-
ity (S3F) is commissioned at Tarapur.
September 24, 1999 : Unit-2 of Kaiga Atomic Power
Station attains criticality. It is synchronised to the
grid on December 02, 1999, and becomes commer-
cial on March 16, 2000.
» December 24, 1999 : Unit-3 of Rajasthan Atomic
Power Station attains criticality. It is synchronised
to the grid on March 10, 2000, and becomes com-
mercial on June 2, 2000.
» January 1, 2000 : BRIT's Radiation Processing
Plant at Vashi, Navi Mumbai is commissioned.
2000 : Boron Enrichment Plant is commissioned
at IGCAR, Kalpakkam.
» March 8, 2000 : Tarapur Atomic Power Project
–3&4 rises up.
» March, 2000 & May 2000 : First concrete pour
of Unit-3 and Unit-4 of Tarapur Atomic Power
Project-3 & 4.
» April 21, 2000 : Folded Tandem Ion Accelera-
tor (FOTIA) at Trombay delivers first beam on tar-
get.
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» September 26, 2000 : Unit-1 of Kaiga Atomic
Power station attains criticality. It synchronises to
the grid on October 12, 2000.
» November 03, 2000 : Unit-4 of Rajasthan
Atomic Power station attains criticality. It creates
history by synchronising with the grid within a
period of 14 days on November 17, 2000. The unit
becomes commercial on December 23, 2000.
» November 16, 2000 : Unit - 1 of Kaiga Atomic
Power Station becomes commercial.
2001 : FBTR fuel reaches burn up of 100,000 MWd/
T.
» March 18, 2001: Units 3 & 4 of Rajasthan Atomic
Power Stations dedicated to the nation.
» February 12, 2002 : India signs the biggest con-
tract with the Russian Federation for the Nuclear
Power Station at Kudankulam, Tamil Nadu. March
» 30 & May 10, 2002 : First pours of concrete
respectively of Unit-3 and Unit-4 of Kaiga Atomic
Power Project 3 & 4.
» March 31, 2002 : First pour of concrete of Units
1&2 of Kudankulam Atomic Power Project.
» September 18, 2002 : First pour of concrete of
Unit-5 of Rajasthan Atomic Power Project 5 & 6
» October 31, 2002 : Waste Immobilisation Plant
and Uranium-Thorium Separation Plant at (both
at Trombay), and the Radiation Processing Plant
Krushak at Lasalgaon, district Nasik, Maharashtra,
are dedicated to the Nation.
» November 2002 : UCIL's Turamdih Mine,
Jharkhand is inaugurated and Technology Dem-
onstration Pilot Plant becomes operational at
Jaduguda.
» 2003 : 1.7 MeV Tandetron Accelerator and the
demo facility Lead Mini Cell (LMC), for reprocess-
ing of FBTR carbide fuel on lab scale, are commis-
sioned at IGCAR.
» 06-March-2005 : India's first 540 MWe Nuclear
Power Reactor Tarapur Unit 4 Attains Criticality.
» 04-June-2005 : TAPS 4 synchronised to the grid
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IAEA financial resources include the regular bud-
get and voluntary contributions. The Regular Bud-
get for 2008 amounts to € 277 million. The target
for voluntary contributions to the Technical Co-
operation Fund for 2008 is $80 million.

IAEA Mission And

The IAEA is the world´s center of cooperation in
the nuclear field. It was set up as the world´s "At-
oms for Peace" organization in 1957 within the
United Nations family. The Agency works with
its Member States and multiple partners worldwide
to promote safe, secure and peaceful nuclear tech-
nologies.
Organizational Profile
The IAEA Secretariat is headquartered at the
Vienna International Centre in Vienna, Austria.
Operational liaison and regional offices are located
in Geneva, Switzerland; New York, USA; Toronto,
Canada; and Tokyo, Japan. The IAEA runs or sup-
ports research centers and scientific laboratories
in Vienna and Seibersdorf, Austria; Monaco; and
Trieste, Italy.
Programmes
The IAEA´s mission is guided by the interests and
needs of Member States, strategic plans and the
vision embodied in the IAEA Statute. Three main
pillars - or areas of work - underpin the IAEA´s
mission: Safety and Security; Science and Tech-
nology; and Safeguards and Verification.
Relationship with
United Nations
As an independent international organization re-
lated to the United Nations system, the IAEA´s
relationship with the UN is regulated by special
agreement. In terms of its Statute, the IAEA re-
ports annually to the UN General Assembly and,
when appropriate, to the Security Council regard-
ing non-compliance by States with their safeguards
obligations as well as on matters relating to inter-
national peace and security.

The IAEA Secretariat is a team of 2200 multi-dis-

ciplinary professional and support staff from more
than 90 countries. The Agency is led by Director
General Yukiya Amano and six Deputy Directors
General who head the major departments.

IAEA programmes and budgets are set through

decisions of its policymaking bodies - the 35-mem-
ber Board of Governors and the General Confer-
ence of all Member States. Reports on IAEA ac-
tivities are submitted periodically or as cases war-
rant to the UN Security Council and UN General
Assembly.

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Nuclear Security Summit
Adopted Communiqué and Plan of Work
A major international summit convened by Barack
Obama to discuss ways of improving the security
of nuclear materials got under way on April 12, 2010
with the American President underlining the im-
portance of preventing terrorists from getting hold
of the ingredients for a nuclear bomb in Washing-
ton.
The two-day summit brought together 47 countries,
including the U.S., 37 of whom are being represented
by their heads of state or government. A final dec-
laration, negotiated over the past few months by
officials from participating countries has been re-
leased.
Romania has nearly 1500 MWe of nuclear generat-
ing capacity and sources 20 per cent of its electric-
ity from nuclear energy, Bulgaria's two reactors
account for 35 per cent of its national power grid,
and Hungary has four reactors generating one-third
of its power. All three countries also figure in the
list compiled by the International Panel on Fissile
Material with stocks of Highly Enriched Uranium
in the 10-100 kg. range. Yet, neither country will
be at the Washington summit, even though Arme-
nia, with just 370 MWe of nuclear power has been
invited. Uzbekistan has also not been invited, de-
spite holding HEU stocks in the 100-1000 kg range.
But Georgia, with no nuclear programme to speak
of, will be in Washington.
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By: Sant Prasad Gupta
Two other countries whose presence ought to have
been considered essential to such an endeavour are
Niger and Namibia, who together account for nearly
18 per cent of the world's mined uranium. But the
two African states, whose yellowcake drives much
of the world's nuclear programme, were not con-
sidered important enough for the summit.
Laura Holgate, Senior Director, WMD Terrorism
& Threat Reduction at National Security Council,
told that the idea was to get a representative set of
countries. “We couldn't invite every single country
that has any nuclear connectivity and so we were
looking for countries that represented regional di-
versity where we had states that had weapons, states
that don't have weapons, states with large nuclear
programs, states with small nuclear programs.”
Both India and Pakistan has attended the summit at
the prime ministerial level. Israeli Prime Minister
Benjamin Netanyahu pulled out at the last minute,
opting to send his Foreign Minister instead.
Statement by Indian Prime
Minister
Nuclear security is one of the foremost challenges
we face today. I therefore wish to commend Presi-
dent Barack Obama for his initiative in convening
this Summit on Nuclear Security. We would like
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the Summit to lead to concrete outcomes which help
make our world a safer place.
The developmental applications of nuclear science
in areas such as medicine, agriculture, food preser-
vation and availability of fresh water are by now
well established. Today, nuclear energy has emerged
as a viable source of energy to meet the growing
needs of the world in a manner that is environmen-
tally sustainable. There is a real prospect for nuclear
technology to address the developmental challenges
of our times.
In India we have ambitious plans for using nuclear
energy to meet our growing energy needs. Our tar-
get is to increase our installed capacity more than
seven fold to 35000 MWe by the year 2022, and to
60,000 MWe by 2032.
The nuclear industry’s safety record over the last
few years has been encouraging. It has helped to re-
store public faith in nuclear power. Safety alone,
however, is not enough. The challenge we face to-
day is that of ensuring nuclear security.
The danger of nuclear explosives or fissile material
and technical know-how falling in to the hands of
non-state actors continues to haunt our world. India
is deeply concerned about the danger it faces, as do
other States, from this threat.
Since 2002, we have piloted a resolution at the
United Nations General Assembly on measures to
deny terrorists access to Weapons of Mass Destruc-
tion. We fully support the implementation of United
Nations Security Council Resolution 1540 and the
United Nations Global Counter Terrorism Strategy.
The primary responsibility for ensuring nuclear se-
curity rests at the national level, but national re-
sponsibility must be accompanied by responsible
behaviour by States. If not, it remains an empty slo-
gan. All States should scrupulously abide by their
international obligations. It is a matter of deep re-
gret that the global non-proliferation regime has
failed to prevent nuclear proliferation. Clandestine
proliferation networks have flourished and led to
insecurity for all, including and especially for In-
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dia. We must learn from past mistakes and institute
effective measures to prevent their recurrence.
The world community should join hands to elimi-
nate the risk of sensitive and valuable materials and
technologies falling into hands of terrorists and il-
licit traffickers. There should be zero tolerance for
individuals and groups which engage in illegal traf-
ficking in nuclear items.
Global non-proliferation, to be successful, should
be universal, comprehensive and non-discrimina-
tory and linked to the goal of complete nuclear
disarmament.We welcome the fact that the world
is veering around to our view that the best guaran-
tor of nuclear security is a world free from nuclear
weapons.
Starting with Jawaharlal Nehru over five decades
ago, India has been in the forefront of the call for
global and complete nuclear disarmament. In 2006
India proposed the negotiation of a Nuclear Weap-
ons Convention. We have also expressed our readi-
ness to participate in the negotiation of an interna-
tionally verifiable Fissile Material Cut-off Treaty
in the Conference on Disarmament.
Former Prime Minister Rajiv Gandhi had put for-
ward a concrete Action Plan in 1988 for the univer-
sal and non-discriminatory elimination of nuclear
weapons leading to global nuclear disarmament in
a time-bound framework. I once again reiterate
India’s call to the world community to work towards
the realisation of this vision.
We welcome the agreement between the United
States and Russia to cut their nuclear arsenals as a
step in the right direction. I call upon all states with
substantial nuclear arsenals to further accelerate this
process by making deeper cuts that will lead to
meaningful disarmament.
We are encouraged by the Nuclear Posture Review
announced by President Obama. India supports the
universalisation of the policy of No First Use. The
salience of nuclear weapons in national defence and
security doctrines must be reduced as a matter of
priority. The dangers of nuclear terrorism make the
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early elimination of nuclear weapons a matter of
even greater urgency.
The Indian Atomic Energy Act provides the legal
framework for securing nuclear materials and fa-
cilities, and the Atomic Energy Regulatory Board
ensures independent oversight of nuclear safety and
security. We are party to the Convention on the
Physical Protection of Nuclear Material and its 2005
amendment.
India’s three stage nuclear power programme which
began sixty years ago is based on a closed nuclear
fuel cycle. A direct benefit of this is that it ensures
control over nuclear material that is generated as
spent fuel. At the same time, we are continually
upgrading technology to develop nuclear systems
that are intrinsically safe, secure and proliferation
resistant. We have recently developed an Advanced
Heavy Water Reactor based on Low Enriched Ura-
nium and thorium with new safety and prolifera-
tion-resistant features.
India has maintained an impeccable non-prolifera-
tion record, of which we are proud of. As a respon-
sible nuclear power, India has and will not be the
source of proliferation of sensitive technologies. We
have a well-established and effective export control
system which has worked without fail for over six
decades. We have strengthened this system by
harmonisation of our guidelines and lists with those
of the Nuclear Suppliers Group and the Missile
Technology Control Regime. Our commitment to
not transfer nuclear weapons or related materials
and technologies to non-nuclear weapon states or
non-state actors is enshrined in domestic law
through the enactment of the Weapons of Mass
Destruction Act. We stand committed not to trans-
fer reprocessing and enrichment technologies and
equipment to countries that do not possess them.
As a founder member of the International Atomic
Energy Agency, we have consistently supported the
central role of the IAEA in facilitating national ef-
forts to strengthen nuclear security and in fostering
effective international cooperation. We have so far
conducted nine Regional Training Courses on
Nuclear Security in cooperation with the IAEA. We
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have entered into a Safeguards Agreement with the
IAEA in 2008, and have decided to place all future
civilian thermal power reactors and civilian breeder
reactors under IAEA safeguards.
We will continue to work with the IAEA and our
partners in the United Nations as well as other fo-
rums such as the Global Initiative to Combat
Nuclear Terrorism to upgrade standards, share ex-
periences and ensure effective implementation of
international benchmarks on nuclear security.
we have decided to set up a “Global Centre for
Nuclear Energy Partnership” in India. We visualize
this to be a state of the art facility based on interna-
tional participation from the IAEA and other inter-
ested foreign partners. The Centre will consist of
four Schools dealing with Advanced Nuclear En-
ergy System Studies, Nuclear Security, Radiation
Safety, and the application of Radioisotopes and
Radiation Technology in the areas of healthcare,
agriculture and food. The Centre will conduct re-
search and development of design systems that are
intrinsically safe, secure, proliferation resistant and
sustainable. We would welcome participation in this
venture by your countries, the IAEA and the world
to make this Centre’s work a success.
Communiqué and Plan of
Work
The 47-nation Nuclear Security Summit ended with
the adoption of a short final communiqué and seven
page work plan aimed at promoting the effective
security of nuclear materials worldwide.
The communiqué includes general commitments
while the more specific work plan constitutes a po-
litical commitment by participating countries to
carry out applicable measures, on a voluntary basis,
in all aspects of the storage, use, transportation and
disposal of nuclear materials.
Unlike most nuclear documents springing from the
Nuclear Non-Proliferation Treaty system, the
Washington communiqué makes no legal distinc-
tion between nuclear weapon states and the rest. Nor
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is there any reference to the NPT. Instead, it reaf-
firms the fundamental responsibility of States, con-
sistent with their international obligations, to main-
tain effective security of all nuclear materials. These
materials are defined as including “nuclear materi-
als used in nuclear weapons, and nuclear facilities
under their control.”
The document calls for wider support for existing
international instruments on nuclear security such
as the 1979 Convention on the Physical Protection
of Nuclear Material and its 2005 amendment, the
Convention on the Suppression of Nuclear Terror-
ism.
There is no reference in the documents to U.N. Se-
curity Council Resolution 1887 on nuclear security
and non-proliferation, passed last year at the urging
or U.S. President Barack Obama. Indian officials say
the reference in that to NPT adherence meant it could
not be included in the communiqué.
Next Nuclear Security
Summit in the South Korea
President Barack Obama announced that the next
Nuclear Security Summit would be held in the Re-
public of Korea (South Korea) in two years. He said
that this would help to “ensure that our progress is
not a fleeting moment, but part of a serious and sus-
tained effort.”
Mr. Obama said the summits provided the nations
with the opportunity to take specific and concrete
national-level actions to secure the nuclear materi-
als, to strengthen the International Atomic Energy
Agency, and to deepen international cooperation
aimed at preventing nuclear materials from falling
into the hands of terrorists.

But the communiqué and work plan have words of

support for the G8-led Global Partnership against
the Spread of Weapons of Mass Destruction. This
initiative includes the annual G8 statements on non-
proliferation, the last of which sought to prevent
India from accessing enrichment and reprocessing
technologies.

The work plan covers a wide range of issues from

nuclear detection and forensics to exchange of in-
formation to detect and prevent illicit nuclear traf-
ficking, and the promotion of nuclear security cul-
ture.

The document recognises that highly enriched ura-

nium (HEU) and separated plutonium — basic in-
gredients of a nuclear weapon require special pre-
cautions and that participating countries agree to
“promote measures to secure, account for, and con-
solidate these materials.” It also says that they agree
to encourage the conversion of reactors from HEU
to low-enriched uranium, a stated priority of the
U.S. in the run-up to the Summit.

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 UPSCPORTAL Current Affairs : http://upscportal.com/civilservices/current-affairs

Occupy Movement
Danger Bell is Ringing
Whatever the original impulse behind
Occupy Wall Street, or the specula-
tion of what the movement might
become, this much is true: The
groups of protesters, now camping or
hanging out in many U.S. cities, and
the police agencies that have respon-
sibility for public safety and order, are
both shifting into new postures of
action and response. Whether that
evolving chemistry will push things
toward more confrontation remains
unclear. But the combination new
participants, new police tactics is
clearly opening an uncertain chapter
in a story that from its inception has
embraced the notion of unplanned,
unscripted civil action.
The Occupy movement is an inter-
national protest movement which is
primarily directed against economic
and social inequality. The first Oc-
cupy protest to be widely covered was
Occupy Wall Street in New York City,
taking place on September 17, 2011.
By October 9, Occupy protests had
taken place or were ongoing in over
95 cities across 82 countries, and over
600 communities in the United States.
As of December 1 the Meetup page
"Occupy Together" listed 2,686 Oc-
cupy communities worldwide. The
movement was initiated by the Ca-
nadian activist group Adbusters, and
partly inspired by the Arab Spring,
especially Cairo's Tahrir Square pro-
tests, and the Spanish Indignants. The
movement commonly uses the slogan
We are the 99%, the Occupy hashtag
for mat, and organizes through
websites such as "Occupy Together".
According to the Washington Post,
the movement, which has been de-
scribed as a "democratic awakening"
by Cornel West, is difficult to distill
to a few demands.
On May 30, 2011, a leader in the
Spanish Indignants movement, in-
spired by the Arab Spring, made a call
for a worldwide protest on October
15. In mid-2011, the Canadian-based
group Adbusters Media Foundation,
best known for its advertisement-free
anti-consumerist magazine
Adbusters, proposed a peaceful oc-
cupation of Wall Street to protest
corporate influence on democracy,
address a growing disparity in wealth,
and the absence of legal repercussions
behind the recent global financial cri-

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 UPSCPORTAL Current Affairs : http://upscportal.com/civilservices/current-affairs
sis. "One of the inspirations for the
movement was the Democracy Vil-
lage set up in 2010, outside the Brit-
ish Parliament in London. The first
protest was held at Zuccotti Park in
New York City on September 17,
2011. The phrase "The 99%" is a
political slogan used by protesters of
the Occupy movement. It was origi-
nally launched as a Tumblr blog page
in late August of 2011. It refers to
the concentration of wealth among
the top 1% of income earners com-
pared to the other 99 percent; the top
1 percent of income earners nearly
tripled after-tax income over the last
thirty years according to a Congres-
sional Budget Office (CBO) report.
The report was released just as con-
cerns of the Occupy Wall Street
movement were beginning to enter
the national political debate. Accord-
ing to the CBO, between 1979 and
2007 the incomes of the top 1% of
Americans grew by an average of
275%. During the same time period,
the 60% of Americans in the middle
of the income scale saw their income
rise by 40%. Since 1979 the average
pre-tax income for the bottom 90%
of households has decreased by
$900, while that of the top 1% in-
creased by over $700,000, as federal
taxation became less progressive.
Thus, the top 20% of Americans
owned 85% of the country's wealth
and the bottom 80% of the popula-
tion owned 15%.
The movement has been described as
having an "overriding commitment"
to Participatory democracy. Much of
the movement's democratic process
occurs in "working groups," where
any protestor is able to have their say.
Important decisions are often taken
at "General assemblies", which can
themselves be informed by the find-
ings of multiple working groups. Gen-
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eral assemblies take place at most
Occupy sites every evening at 7PM.
Decisions are made using the consen-
sus model of direct democracy, wav-
ing hands in various simple signals
and operating with discussion facili-
tators rather than leaders, a system
that may have originated in the
Quaker movement several centuries
ago.
Impact
In the United States, the protests have
helped shift the national dialogue
from the deficit to economic problems
many ordinary Americans face, such
as unemployment, the large amount
of student and other personal debt
that burdens middle class and work-
ing class Americans, and other major
issues of social inequality, such as
homelessness. The movement ap-
pears to have generated a national
conversation about income inequal-
ity, as evidenced by the fact that print
and broadcast news mentioned the
term “income inequality” more than
five times more often during the last
week of October 2011 than during
the week before the occupation be-
gan.
The increased public focus on the
growing income gap between eco-
nomic elites and the middle class and
on the importance of the rights of
ordinary workers brought about by the
Occupy Movement gave a significant
boost to organized labor's campaign
to repeal an anti-labor union law
passed in the State of Ohio known
as Ohio Senate Bill 5 (SB5). In the
November 2011 elections, Ohio vot-
ers repealed SB 5. In November 2011,
U.S. Congressman Ted Deutch, mem-
ber of the House Judiciary Commit-
tee, introduced the "Outlawing Cor-
porate Cash Undermining the Public
Interest in our Elections and Democ-
racy (OCCUPIED) Constitutional
Amendment," which would overturn
the Citizens United Supreme Court
decision recognizing corporate con-
stitutionally-protected free speech
rights and would ban corporate
money from the electoral process.
Where India
Stands
India has very unequal distribution of
wealth as well. In Bihar and Orissa,
the country's poorest states, at least
half of the population is estimated
to be under the poverty line. (This
should be contrasted with only 10%
in some other states). Although the
rate of poverty has decreased since
Independence, steady population
growth means that the total number
of Indians in poverty have increased.
Wealth is often a crucial factor in
human security. The poorest people
in India are those with extremely lim-
ited resources, in terms of land, edu-
cation, or social networks. If the poor
are unable to make enough income
to cover their most basic needs (such
as food, water, fuel, shelter), it is
much more difficult for them to ac-
cess their right to education, health,
and political participation. Likewise,
it is hard for people to demand basic
needs from the government if they
don't have freedom.
 UPSCPORTAL Current Affairs : http://upscportal.com/civilservices/current-affairs

In support, the inequality measure of
Gini coefficient (with values of zero
for no inequality, and one for extreme
inequality) on the basis of NSS con-
sumption data is usually cited. This
Gini coefficient in 2004-05 was
0.325, and is indeed lower than in
many developing countries, including
China, and by constant repetition,
both in national and international
documents and the financial press,
this has become part of the folklore
about Indian inequality. But there are
reasons to believe that the NSS data
under-represent the rich, and in any
case while for other developing coun-
tries the Gini coefficient often refers
to income distribution, India's refers
to distribution of consumption ex-
penditure, which is usually less than
that of income (partly because the
rich tend to save more than the poor).
But ethically and socially one is more
interested in inequality of opportu-
nity rather than that of outcome (like
income). After all, with the same op-
portunity two people can end up with
different incomes, simply because one
is more ambitious and hard-working
than the other, and many of us may
not be too worried about that as long
as the opportunities are equalised. For
Latin America some attempts have
now been made to measure inequal-
ity of opportunity, but very little as
yet in India. But in a country like In-
dia inequality of opportunity will
surely depend on distribution of land,
of education, and social identity -- a
child born in a rural landless adivasi
family with very little scope for edu-
cation will be severely handicapped
in her life chances for no fault of her
own.
So, it can be said that unequal distri-
bution of wealth is a matter of great
concern worldwide. It should be dealt
with keeping this in mind that every
individual has his humanrights and it
should not be suppressed. However,
inequality of opportunity is rather
damaging as that of unequal distri-
bution of wealth. Ethically and so-
cially one is more interested in in-
equality of opportunity rather than
that of outcome (like income). After
all, with the same opportunity two
people can end up with different in-
comes, simply because one is more
ambitious and hard-working than the
other, and many of us may not be too
worried about that as long as the op-
portunities are equalised.

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Integrated Guidance Programme for IAS (Pre) - 2012
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Three major elements of
T the United Progressive
Alliance government's
commitment to provide food security
to the people are reforming the
public distribution system (PDS),
raising foodgrain productivity and
production, and creating a
decentralised, modern warehousing
system.
Ideally, the reforms in the PDS
should have come first for the
availability and delivery of subsidised
foodgrains to become meaningful
and comprehensive. Be that as it may,
the recommendation of the National
Advisory Council (NAC) to launch
universal PDS in one-fourth of all
districts or blocks for a start should be
seen as a paradigm shift towards
universalisation. This move reveals
that the all-powerful NAC headed by
UPA chairperson Sonia Gandhi has
realised that the ability to deliver
cheap foodgrains will be contingent
on availability availability that is
home-grown, not based on imports.
In order to make a serious effort to
meet the provisions of the proposed
food security Bill, it is essential to
enhance the production of wheat,
rice, pulses, oilseeds and millets.
This, in turn, needs a policy review in
favour of land reforms, securing
fertile agricultural land for foodgrain
production rather than allowing the
indiscriminate setting up of special
economic zones (SEZs), mega-food
parks and builders' colonies on
farmers' fields.
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By all indications, the 150 districts
from where universal PDS would
commence will be in the rural
poverty-belt in Jharkhand, Bihar,
Chhattisgarh, Orissa, Assam, eastern
Uttar Pradesh, Madhya Pradesh and
Rajasthan. Recent events have
shown that there is a certain urgency
about reaching out to the poor and
the marginalised people in this belt.
The rough calculation is that
universalisation will begin in some
1,500 blocks (an average of 10 in each
of the 150 districts) where more than
95 per cent of the population is poor.
The criterion that is being worked out
will exclude those who are in salaried
or government jobs, are income tax
payees, have a four-wheeler or own a
plot or a house with a plinth area of
over 500 square feet. Using these
criteria, it is estimated that about five
per cent of the population would be
out of the scheme in these districts.
This will be crucial because the
identification of beneficiaries and
implementation of the scheme will
be done by the State governments.
It has also been decided to
subsume the “poorest of the poor”
the Antyodaya Anna Yojna bene-
ficiary families now numbering 2.5
crore of the 6.5 crore Below Poverty
Line (BPL) families. The AAY
beneficiaries buy PDS foodgrains at
Rs.2 a kg. They will have to pay Re.1
more for grain under the universal
PDS, which will provide 35 kg wheat
or rice at Rs.3 a kg per family to all the
identified beneficiaries, including
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Article
• By : Dr. Divya
those in the Above Poverty Line (APL)
category, in the identified districts.
For the rest of the 490-odd
districts where targeted PDS will
continue for now, the Tendulkar
Committee's poverty estimate of
8.07 core families will hold. Hence,
for the APL population that is brought
in or kept out of the PDS depending
on grain availability, it will be status
quo for the time being. The APL
families will gradually (possibly over
five years) be assured of a minimum
of 25 kg per family at prices that will
be worked out by the govern-ment.
The subsidy burden will depend on
the estimated offtake and the cost
will be worked out by the Union
Ministry of Food and Public
Distribution.
Welfare measures including mid-
day meal programmes, the
integrated child development
scheme and calamity relief
programmes will continue. The
inclusion of the destitute, migrants,
the old, the infirm and the urban poor
will be worked out after the Hashim
Committee report on urban poverty
is received. For now, pulses and
edible oils will not be included in the
food basket under the proposed
National Food Security Act as the
acute shortfall in the production of
these commodities is met by large-
scale imports.
Broadly, there will be an
enhanced outgo of about 20 million
tonnes on account of providing 35 kg
(up from the present 12 kg) to the APL

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Article
population at Rs.3 a kg in the 150
districts in addition to the BPL outgo.
In a bad year, this may come from
cutting APL or Open Market Sale
Scheme allocations.
It is clear by now that the key to
universalisation is the availability of
foodgrains. For this reason, even the
activists working under the banner of
the Right to Food Campaign have
accepted “phased” universalisation.
The Food Ministry's cautious
estimate is that the average annual
availability for the PDS is about 43
million tonnes. The NAC seems to
have gone by the Planning
Commission estimate of availability
of about 50 to 55 million tonnes to
ensure the supply of cheap
foodgrains in 150 districts besides
fulfilling regular commitments of
buffer and welfare schemes.
It is obvious that the UPA's
seeming benevolence on the food
security front is not going to be
entirely without strings. The
underlying principle is that the
subsidy accruing from providing
foodgrains at cheap rates will come
from withdrawal of subsidies on
petrol, diesel and, gradually,
kerosene, and other unforeseen
measures.
Besides ensuring minimum
foodgrain entitlements at a discount,
the draft of the National Food
Security Act will indicate enabling
clauses with regard to enhancing
foodgrain production, public distri-
bution reforms and improvement in
drinking water, sanitation, health and
hygiene for better intake and
absorption of food by the poor.
In other words, the proposed Bill
will provide for food security but call
for nutrition security.
Salient features of the Food Security
Bill are as follows:
President Pratibha Patil on June 4,
2009 said that a National Food
Security Act would be formulated
whereby each BPL family would be
entitled by law to get 25 kg of rice or
wheat per month at Rs 3 a kg, a
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promise made by the Congress
before general elections 2009.
The draft Food Security Bill would
provide 25 kg of wheat/ rice to BPL
households at Rs. 3/- per kg. For
some, it is just old wine in a new
bottle and would rely excessively on
existing infrastructure and logistical
support of the public distribution
system (PDS).
If made into a law, the draft Food
Security Bill would reduce the
allocation for a below poverty line
(BPL) household (e.g. in the case of
Antodaya Anna Yojana) from 35 kg of
rice/ wheat per month to 25 kg of
rice/ wheat per month. This would
appear contradictory to many who
expected the Bill to be a benign effort
of the UPA-II (2009-****) to ensure
food security. There are possibilities
o f i n c re a s e d fo o d s u b s i d i e s
amounting to Rs. 70,000 crore per
annum if the Bill becomes a law,
which might be opposed by those
who prefer to follow neo-liberal
doctrine. Subsidies are usually
opposed on the pretext of distortion
in prices, inefficiency and leakages.
The Interim Budget 2009-10 estimate
of the food subsidy bill in 2009-10
was Rs. 42,490 crore.
The exact number of BPL
households may vary according to
the definition of poverty line one
selects. In that case, it would be
difficult to target the original BPL
households under the new Food
Security law. There are four different
estimates for the number of BPL
households: one by Prof. Arjun
Sengupta, another by Dr. NC Saxena,
World Bank estimates and the
Planning Commission estimates.
According to Prof. Arjun Sengupta
who chaired the National
Commission for Enterprises in the
Unorganized Sector, 77% of the
population of India lives below the
poverty line. Dr. NC Saxena, a retired
civil servant acting as a
Commissioner appointed by the
Supreme Court, feels that half the
country's population of 1.15 billion is
below the poverty line, which he
apparently defines as a monthly per
capita income of Rs 700 in rural areas
and Rs 1,000 in urban areas. While a
Planning Commission estimate puts
the number of below poverty line
(BPL) families at 62.5 million, state
governments estimate that this
number is closer to 107 million. Some
experts feel that availing the public
with more number of BPL ration
cards help the state-level politicians
to win elections through populist
means. The World Bank's figure for
the percentage of population below
the poverty line in India is 42 per cent,
based on 2005 data.
The Uniform Recall Period (URP)
Consumption distribution data of
National Sample Survey (NSS) 61st
Round places the poverty ratio at
28.3 per cent in rural areas, 25.7 per
cent in urban areas and 27.5 per cent
for the country as a whole in 2004-05.
The corresponding poverty ratios
from the Mixed Recall Period (MRP)
consumption distribution data are
21.8 per cent for rural areas, 21.7 per
cent for urban areas and 21.8 per
cent for India as a whole. While the
former consumption data uses 30-
day recall/reference period for all
items of consumption, the latter uses
365-day recall/reference period for
five infrequently purchased non-food
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items, namely, clothing, footwear,
durable goods, education and
institutional medical expenses and
30-day recall/reference period for
remaining items. The percentage of
poor in 2004-05 estimated from URP
consumption distribution of NSS 61st
Round of consumer expenditure data
are comparable with the poverty
estimates of 1993-94 (50th Round)
which was 36 per cent for the country
as a whole. The percentage of poor in
2004-05 estimated from MRP
consumption distribution of NSS 61st
Round of consumer expenditure data
are roughly comparable with the
poverty estimates of 1999-2000
(55th Round) which was 26.1 per cent
for the country as a whole Instead of
better implementation of the already
existing schemes such as the
Targeted Public Distribution System
(TPDS), Antodaya Anna Yojana (AAY),
Integrated Child Development
Scheme (ICDS), Mid Day Meal
Scheme (MDMS) etc., the Food
Security law might make things
unduly worse and unnecessarily
complicated. A cynical question here
would be: Is the Food Security Bill
going to replace all such food related
schemes that existed before its
enactment?
If the Bill is about ensuring food
security, how can it leave those who
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may not fall below the poverty line
but are already exposed to food
insecurity? The Rome Declaration
(1996) made during the World Food
Summit states that 'food security is
achieved when all people, at all
times, have physical and economic
access to sufficient, safe and
nutritious food to meet their dietary
needs and food preferences for an
active life'. Food security is about
nutrition security too. If that is the
case, the Food Security Bill has to
rethink about the quality of
foodgrains supplied and distributed.
The Food Security Bill must also aim
at providing fortified foodgrains
along with edible oils, salt and
essential spices. A balanced diet
would ensure both food and nutrition
security. The basket of commodities,
which would be available to the
consumers, should reflect local tastes
and preferences and must include
locally grown cereals and legumes.
The alternative draft Food
Security Bill that has been prepared
by Prof. Jean Dreze and his team and
which has been scrutinized by 10,
Janpath, according to media
resources, has clauses to make the
various food related programmes
running in the country more
accountable and transparent. There
is focus on public accountability and
more coverage of BPL households
under the yet to be enacted Food
Security law. Prof. Dreze's draft points
out that subsidy would not rise due to
reduction in allocation for rice/
wheat per BPL household.
If targeting of BPL households is
done under the Food Security Bill,
then it might lead to inclusion
(including the non-poor) and
exclusion (excluding the poor) errors.
It would be wiser to go for
universalization (rather than
targeting) as was recommended by
the Committee on Long Term Grain
Policy under the chairmanship of
Prof. Abhijit Sen (2000-02).
There are apprehensions that
sustainability of Food Security law
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Article
would be at peril if India faces lower
agricultural production due to poor
harvest, drought etc. in the future. Is
India ready to rely upon food imports
and food aid to ensure right to food?
At present, the country has been
facing shortage in south-west
monsoon rainfall that might affect
agricultural production and prices of
commodities. Is India ready to rely
exclusively upon biotechnology for
increasing its agricultural production
so as to ensure food security for all?
Some analysts feel that India
presently has adequate buffer stocks
to enact and implement the Food
Security law.
The Food Security law is nothing
but a gimmick so as to increase the
popularity of the UPA II. This is a
forward-looking step to ensure vote
for the Congress so that Rahul Gandhi
could lead UPA-III.
Seeing the popularity of the
National Rural Employment
Guarantee Scheme (NREGS), which
helped the Congress to win the 2009
parliamentary elections, the newly
constituted Government has thought
of bringing out the Food Security Act
within the first 100 days of its stay in
the office for the second time.
The World Development Report
2008-Agriculture for Development,
which has been brought out by the
World Bank mentions that India
presently faces the problem of
depleting ground water level that
makes agriculture unsustainable and
poses risk to environment. If rice is
one of the foodgrain that would be
supplied when the Food Security Act
comes into being, then more and
m o re fa r m e rs wo u l d g o fo r
cultivation of rice. In the Punjab
region, overexploitation of
groundwater takes place thanks to
the huge subsidies given on
electricity. Moreover, minimum
support prices (MSP) for rice increase
the financial attractiveness of rice
relative to less water-intensive crops,
which makes depletion of ground
water table more obvious.
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Right to Recall
Solidarity of Democracy
Should we have the right to 'recall' MPs? It can be
done in America, why not here? Few of us had
heard of recall until 2003 when California Gover-
nor Gray Davis lost the recall ballot to the
'governator', Arnold Swarzenegger. The idea is
simple, as a Civitas online briefing proposed yes-
terday. Sometimes voters regret the choice they
made at the last general election and do not want
to wait until the next time. If a proportion of the
electorate (say 20%) can be persuaded to sign a
petition to recall the elected office holder, then an
immediate by-election must be held.
There is cross-party support. Back in February 2008
a group of 27 Tory MPs wrote to The Daily Tele-
graph calling for local voters to be allowed to 're-
call' their MP and at the weekend Lib-Dem leader
Nick Clegg came out in favour.
How common is it? In America 18 states allow
elected officials to be recalled from their posts by a
petition of between 12 and 40 per cent of voters.
In 1903 the city of Los Angeles was the first large
area to introduce recall, followed in 1908 by Or-
egon and in 1911 by California. Then Arizona,
Colorado, Nevada and Washington all adopted re-
call in 1912. In addition eleven more states, while
not permitting recall of state-level officials, do al-
low the recall of local officials.
Recall ballots are useful in precisely the sort of situ-
ation that has now arisen in the UK. We are told
that MPs have acted within the rules, but few vot-
ers think they have behaved ethically. Some may
have to face criminal charges but it is likely to be
difficult to reach the high standard of proof re-
quired in a criminal trial, as disgraced MP Derek
Conway found. Some will face the wrath of their
local constituency party, but as Luton MP Marga-
ret Moran discovered, that may not mean very
much. If a significant number of voters think their
MP is not fit to hold public office, then it should
be possible to require them to stand for re-elec-
tion immediately. ,
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The process should not be too easy to prevent con-
stant harassment by disgruntled rivals but, if a sig-
nificant proportion of the electorate wants a bal-
lot, it should be held. How many signatures should
be required? In ten of the 18 American states 25
per cent of the electorate is needed, while Louisi-
ana requires 33.3 per cent and Kansas 40 per cent.
At 12 per cent, California has the lowest require-
ment. A recall ballot is a costly procedure and has
been used sparingly. Only two state governors have
ever been recalled: North Dakota Governor Lynn
Frazier in 1921 and California's Gray Davis in 2003.
However, it was not for lack of trying: one study
estimated that there had been around 40 failed at-
tempts to recall state officials in California.
If the policy were introduced in the UK, how many
signatures should be required? There should be a
significant hurdle, perhaps about 20 per cent of
registered voters in a constituency. The average
constituency size in England is about 75,000 vot-
ers and so a petition of 15,000 would be needed.
The number is achievable without being too easy.
In practice the procedure would probably not be
used very often, but the fact that it was available
would have a salutary effect on MPs and the 'gravy
train' mentality that can only flourish amidst se-
crecy would be no more.
If MPs would like to prove themselves deserving
of respect, voting for recall ballots would go a long
way to restoring public confidence.
Electorate has no Role in the
Selection of Candidates
The Common Wealth Parliament Association de-
bated the matter and considered the right to recall
as a strategy for enforcing greater accountability
of Parliament to the people. People are disillusioned
with the conduct of Parliamentary business.
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The very process of legislative functioning is sub-
verted, leading to incalculable harm to the repre-
sentation of democratic institutions.
The National Commission to Review the Working
of the Constitution has pointed out in its report
how a Parliamentary system, unlike the Presiden-
tial system, lays emphasis on accountability.
Half a century’s experience of the working of the
Constitution has brought to the fore several inad-
equacies, failures and distortions. The National
Commission referred in particular to the emergence
of the unhealthy role of money and mafia power
and to criminalisation, corruption, communalism
and casteism.
The Electorate has no role in the selection of can-
didates for election and the majority of the candi-
dates are elected by minority of votes under the
first-past-the-post system.
Referendum and Recall
Democracies can be of several types : Parliamen-
tary, Presidential and Direct. In a direct democ-
racy, sovereignty is lodged in the assembly of all
citizens who choose to participate.
Such an assembly may pass executive motions (de-
crease), make law, elect and dismiss officials and
conduct trials. In a representative democracy, sov-
ereignty is exercised by a subset of the people,
elected periodically, but otherwise free to advance
their own agendas. Direct democracy deals with
how citizens are “directly” involved with voting
for various laws, instead of voting for representa-
tives to decide for them. Referendum and recall
are pillars of direct democracy.
People at large are conferred the power in a refer-
endum to decide whether a given law should be
scrapped. They have a veto on government legis-
lation.
Recall is a procedure by which voters can remove
an elected representative from office. It was one
of the major electoral reforms advocated by lead-
,
www.upscportal.com
ers of the Progressive moment in the US during
the twentieth century.
This movement was less than successful because
in the US recall elections are prohibited in the fed-
eral system. Recall is a political device designed to
enable voters dissatisfied with an elected official
to replace him before the expiry of his term of of-
fice. The concept originated in Switzerland but
became operative in several American States since
1903.
American Experience
Eighteen States in the American Federation per-
mit recall elections to remove their State Officers.
In 1921, North Dakota’s Governor Lin Frazier was
recalled over a dispute about state-owned indus-
tries. In 2003, the Californian Governor, Gray
Davis, was recalled over mismanagement of the
Stage budget. In many of these States, the petition
for recall must identify some form of malfeasance
or misconduct while in office. The minimum num-
ber of signatures of voters and time limit to qualify
a recall varies between States.
Quite often, a recall triggers a simultaneous spe-
cial election, where the vote on the recall and the
replacement — recall succeed — are on the same
ballet. In 1988, there was a successful petition-drive
to recall the Arizona Governor. But before the
completion of the process, he was impeached and
removed from the Office by the Senate.
Recall in Canada
Canadian provinces have been effective using the
device of recall to infuse discipline in the repre-
sentatives. The Canadian province of British Co-
lumbia enacted representative recall in 1995. The
voters in that province can petition the Govern-
ment to have a sitting representative removed from
office.
Even a Premier presently leading a Government
can be removed from office if enough registered
voters signed the petition.
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A by-election will follow. In January 2003, a record 22 recall efforts were launched.

Venezuelan Constitution
The 1999 Constitution of Venezuela enables a recall of any elected representative including the President.
Article 72 of the Constitution declares that all offices filled by popular vote are subject to revocation.
When half the term of the office has elapsed, voters representing at least 20 per cent of the registered
voters in the constituency may petition for the calling of a referendum to revoke the mandate of the
official.

When the number of voters equals to or is greater than the number of those who elected the representa-
tive vote in favour of the recall, the representative’s mandate shall be deemed to have been revoked.
Action will be taken to fill the permanent vacancy as per the Constitution. The provision for recall was
successfully utilised in 2004.

Switzerland model
Switzerland is often cited as the strongest example of modern direct democracy. It has put to use the
initiative and the referendum at both local and federal levels. Initiatives are proposals, drafted by a citizen
or group of citizens that by virtue of attaining a requisite member of signatures on a petition, are put to the
electorate for acceptance or rejection. However, the populace showed its conservative nature, approving
only about 10 per cent of the initiatives put before them. Recall is not much in use in Switzerland.

Flawed system
The National Commission correctly identified the main cause and source of political decay in India as the
ineptness of the electoral process, which has not been able to keep out criminal, anti-social and undesir-
able elements from participating in and even dominating the political scene and polluting the electoral and
parliamentary processes.

A Constitution, however lofty its exhortations and sentiments, is not a self-executing document. The
present system by which the voters are allowed to assert their sovereignty only once in five years is
woefully flawed.

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UPSCPORTAL Current Affairs : http://upscportal.com/civilservices/current-affairs
Rising Food Prices Worldwide
Causes & Cure
A sharp increase in food prices over the past couple
of years, intensifying in early 2008, has raised seri-
ous concerns about food and nutrition for many poor
people in developing countries. The key affected ar-
eas are Asia, sub-Saharan Africa and Central America.
There are also related concerns about inflation, and –
in some countries – about civil unrest. The current
situation is distinctive because it is not just a select
few but nearly all major food and feed commodities
that are seeing a ‘concurrence of the hike in world
prices’. Real prices are higher than they have been
since the 1974 price spike. When adjusted for infla-
tion and the recent decline of the dollar, the food-
price increases are smaller but still dramatic, carry-
ing serious consequences for the purchasing power of
the poor.
Dramatic increases in international agricultural com-
modity prices began in 2006 and peaked in July 2008.
An equally remarkable and rapid decline of those
prices then ensued, accompanied by extreme volatil-
ity in those prices. The trend in food prices lagged
the rapid increases in other commodity prices,with
rice among the most expensive at the peak and rising
Copyright © 2011 | WWW.UPSCPORTAL.COM
as much as crude oil. High commodity prices quickly
raised farmgate prices in developed countries. In de-
veloping countries, poor market integration and bor-
der barriers may have limited pass-through of these
prices to the farmgate, but there was more rapid food
price and general inflation than occurred in many
developed countries. Countries were impacted to dif-
fering extents, and food riots occurred in the most
affected cases. In response to the crisis, countries from
India and Egypt to Vietnam and Indonesia banned
exports of rice, a staple for half the world. World food
prices rose to a record in December on higher sugar,
grain and oilseed costs, the United Nations said.An
index of 55 food commodities tracked by the Food
and Agriculture Organization gained for a sixth month
to 214.7 points, above the previous all-time high of
213.5 in June 2008, the Rome-based UN agency said
in a monthly report.
Moreover, debate persists on the exogenous mecha-
nisms driving these changes, which are often interre-
lated (e.g., worldwide economic boom and then glo-
bal recession, speculation in commodities). The goal
will be to identify factors likely to drive commodity
6
UPSCPORTAL Current Affairs : http://upscportal.com/civilservices/current-affairs
prices in the future and to provide some understand- believe that the effect of this on world prices has been
ing of the dynamics and persistence of the observed exaggerated.
global price changes. There is an emerging and rea-
sonable consensus among experts and academics about
» Topsoil erosion: modern ploughing, overgrazing,
the range of causes. However, debate is ongoing about fertiliser and pesticide use result in the steady deple-
the relative contribution of these causes. There is cer- tion of worldwide topsoil. Water and winds carry
tainly no one, single cause; rather, many factors are away the soil, when it is not fixed by plant cover. An
interacting in different, locally specific ways. Causes estimated 25 billion tons of topsoil are lost to ero-
vary between different places and over time, as has sion each year. The UN estimates that erosion has
happened in previous commodity booms. Some are now seriously degraded about 40 per cent of the
cyclical, some are structural and some are unique The world’s agricultural land.
cost of food climbed 25 percent from a year earlier in » Increasing urbanisation often means that more
December, based on the FAO figures.The agency’s people are becoming purchasers rather than produc-
food-price indicator rose from 206 points in Novem- ers of food.
ber. Record fuel prices, weather- related crop prob-
lems, increasing demand from the growing Indian and
Food in Figures
Chinese middle classes, and the push to grow corn
for ethanol fuel all contributed to the crisis that year.
Global food production will have to rise 70 percent » 93,000,000 Acres of corn planted by US farmers
by 2050 as the world population expands to 9.1 bil- last year, up 19 per cent on 2006.
lion people from about 6.8 billion people in 2010,
the FAO has said. » 76% Amount of US corn used for animal feed.
Main factors responsible for the recent rises
» 8kg Amount of grain it takes to produce 1kg of
beef.
in food prices:-
» Weather disruptions, including serious droughts, » 20% Portion of US corn used to produce five bil-
lion gallons of ethanol in 2006-07.
have affected output in several key producing coun-
tries (Australia, Turkey, Ukraine and parts of North » 50kg Quantity of meat consumed annually by the
America) in the mid-2000s. This has led to two suc- average Chinese person, up from 20kg in 1985.
cessive years of negative growth in world cereal pro-
» 10% Anticipated share of biofuels used for trans-
duction.
port in the EU by 2020.
» Under-investment in rural infrastructure and agri- » $500m The UN World Food Programme's short-
cultural innovation. fall this year, in attempting to feed 89 million needy
» Increased demand due to use of food crops in biofuel people.
production has resulted in reduced soybean and wheat » 9.2bn The world's predicted population by 2050.
cultivation. It's 6.6bn now.
» World production of cereals has slowed, causing a » 130% The rise in the cost of wheat in 12 months.
decline in stocks over the last decade. This has weak-
ened the ability of the world food system to cope with » 16 times The overall food consumption of the
shocks and created conditions in which short-term world's richest 20 per cent compared with that of the
shocks cause large price increases (Wiggins, poorest 20 per cent.
2008).High cost of oil and energy is affecting trans-
portation of agricultural inputs and outputs, mechani-
» 58% Jump in the price of pork in China in the past
year.
cal cultivation, fertilisers and pesticides.
» Increasing and changing demand in China and In- » $900 The cost of one tonne of Thai premier rice,
up 30 per cent in a month.
dia, due to economic growth, has led to increased
consumer purchasing power and consequent shifts
It has been argued that by 2030 there will be 600 mil-
away from traditional staples and toward higher-value
lion more chronically under-nourished people in the
foods like meat and milk. However, some analysts

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7
UPSCPORTAL Current Affairs : http://upscportal.com/civilservices/current-affairs
world due to continued pressure on prices, in part due
to the conversion of maize away from food uses to
ethanol production. Demand for agricultural com-
modities – food, feed, and fuel – is likely to continue
to escalate. Climate change and rising energy demand
could re-accelerate food prices in the future. Ad-hoc
market and trade policies such as export bans and
import subsidies add further volatility in the interna-
tional food market.
Higher food prices can have radically different ef-
fects across countries and population groups. A re-
cent IFPRI report provides a conceptual framework
for understanding these impacts, which powerfully
highlights the complexity of cause and effect. Broadly
speaking, at the country level, net food exporters will
benefit from improved terms of trade, although the
benefits may be offset in situations where exports are
being banned to protect consumers. Net food-import-
ing nations, however, will struggle to meet domestic
food demand.
An FAO report published in
June 2008 highlights twenty
two developing countries
that are especially vulnerable
due to a combination of high
levels of chronic hunger
(more than 30 per cent un-
der-nourishment), and high
dependence on imports of
petroleum products (100 per cent in most countries)
and, in many cases, also of major grains (rice, wheat
and maize) for domestic consumption. Food-price in-
creases are having serious consequences for the pur-
chasing power of the poor. Affected groups include
the rural landless, pastoralists, small-scale farmers
and the urban poor. Despite the various causes of food
crises, the hardships that individuals and communi-
ties face have striking similarities across disparate
groups and settings.
These include:
» Inability to afford food, and related lack of adequate
caloric intake
» Distress sales of productive assets
» Migration of household members in search of work
» Reduced household spending on healthcare, educa-
tion and other necessities.
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The rise in global commodity prices is fueling infla-
tion everywhere particularly in developing countries
where food and energy forms a major percentage of
the inflation basket.This has forced countries like In-
dia and China to accelerate interest rate hikes to cool
down inflation.Rising Food Prices has caused distress
in a number of places leading to food riots in Africa
and have been said to be a leading cause of the revo-
lutions in the Middle East.Oil Prices continues to in-
crease unabated as dollar decreases with US Money
Printing.Commodities are touching new all time
peaks as rising global demand,finite resources,money
printing by developed countries fuel price hikes.Silver
has been increasing in a parabolic manner with other
commodities too showing heart-stopping jumps in
prices.The rise in global wheat,rice prices has been
at a record as well.Almost all commodities have seen
sharp prices increase.
Specific policies are needed to deal with the chang-
ing causes and consequences of high food prices, to
help the most vulnerable people in the short term,
while working to stabilise food prices by increasing
agricultural production in the long term. A detailed
set of policy prescriptions has been laid out in the
Comprehensive Framework for Action (CFA), devel-
oped by the High Level Task Force on the Global
Food Crisis. The CFA highlights two major objec-
tives – meeting immediate needs, and building
longer-term resilience – with related outcomes and
actions.
8
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Article : (The North Atlantic Treaty Organization )

By: Avadhesh Kumar Pandey

“The NATO Response Force (NRF) was launched at the 2002

Prague summit on 21 November. On 19 June 2003, a major
restructuring of the NATO military commands began as the Head-
quarters of the Supreme Allied Commander, Atlantic were abol-
ished and a new command, Allied Command Transformation
(ACT), was established in Norfolk, Virginia, United States, and
the Supreme Headquarters..”
NATO agreed on April 23, 2010 to begin handing ment exercise its sovereignty, and to start handing
over control of Afghanistan to the Afghan govern- over responsibility for Afghanistan to the Afghans
ment this year, a process that if successful would this year.
enable President Barack Obama to meet his target
date of July 2011 for starting to bring U.S. troops He said a meeting of NATO foreign ministers, in-
home. cluding Hillary Clinton, agreed on what it will take
to create conditions enabling Afghans to assume
U.S. Secretary of State Hillary Rodham Clinton control of their own country. He was not specific
warned of a rocky road ahead, but said she was about what those conditions will be, but said
pleased with progress towards eliminating the progress in that direction is important in order to
shortage of allied trainers for the Afghan army and avoid further erosion of public support for the war
police. She offered a generally sunny outlook for effort.
Afghanistan and said the government of much criti-
cized President Hamid Karzai gets too little credit “Citizens in Afghanistan and in all troop contribut-
for progress in building a viable democracy. ing countries are demanding visible progress, and
they are right to insist on that,” he added. “We should
NATO is still about 450 short of its target for a train- have no illusions. Making progress will not be easy
ing force to assist the Afghan security forces, and and will not be quick. But based on what we see on
while that gap apparently was not filled during the ground now, it is happening.”
Friday’s session, Ms. Clinton said she was not dis-
couraged. He added that looking ahead to a winding down of
the war does not mean the allies will leave before
NATO Secretary General Anders Fogh Rasmussen the mission is accomplished. In earlier remarks, Mr.
said the 28 nation alliance is on track with its new Fogh Rasmussen offered a mostly upbeat assessment
strategy for winding down the war in Afghanistan, to the gathering.
despite security setbacks and a continuing shortage
of foreign trainers for the fledgling Afghan police Mr. Fogh Rasmussen asserted that the Afghan gov-
and army. ernment, which has been hampered by a Taliban
insurgency, political corruption, a dysfunctional
NATO aims in 2010 is clear to take the initiative economy and a dependence on foreign assistance, is
against the insurgents, to help the Afghan govern- starting to take more responsibility for running the
country’s affairs.
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Article : (The North Atlantic Treaty Organization )
“We are preparing to begin the process of handing
over leadership, where conditions allow, back to the
Afghan people,” he said. “The future of this mission
is clear and visible: more Afghan capability and more
Afghan leadership.”
During meeting, which was closed to the press af-
ter Mr. Fogh Rasmussen made brief introductory
remarks, Ms. Clinton was expected to press other
NATO nations to provide more trainers for
Afghanistan’s police and military forces as part of
preparations to withdraw Western troops from there
by summer 2011.
Mr. Fogh Rasmussen said that an additional 450
trainers are needed for Afghanistan’s security forces.
Insufficient numbers of foreign trainers has plagued
the U.S. led war effort for years, although the short-
fall has narrowed in recent months.
This session also was focusing on a NATO initia-
tive aimed at stimulating the Afghan economy by
making it a priority for all foreign contingents op-
erating in Afghanistan to hire Afghan contractors
and purchase Afghan goods and services whenever
possible.
This “Afghan First” policy, as NATO calls it, has
been deemed “the most important step in promot-
ing the development of the Afghan private sector
and supporting the economic development of the
country,” according to a NATO statement.
To underscore NATO’s effort to coordinate all as-
pects of its strategy and operations with the Afghan
government, Afghan Foreign Minister Zalmai
Rassoul was participating in the Tallinn meeting.
NATO’s assessment of its exit strategy comes just
five months after Mr. Obama sharply escalated
troop strength in the rugged mountain nation to
challenge a resurgent Taliban movement. NATO has
struggled, in some cases, to coordinate military op-
erations with Afghan civilian authorities and agen-
cies.
NATO was founded 61 years ago this month with
the signing of a treaty of collective defence against
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a feared land invasion by the Soviet Union.
During talks, Ms. Clinton ruled out an early with-
drawal of about 200 short range U.S. nuclear weap-
ons from bases in five European countries. She said
any reductions should be tied to a negotiated nuclear
pullback by Russia, which has far more of the weap-
ons in range of European targets.
No such talks are in the offing, and Moscow has
shown little interest thus far in bargaining away its
tactical nuclear arms. Ms. Clinton also said the
Obama administration wants NATO to accept mis-
sile defence as a core mission of the alliance.
The U.S. sees anti missile systems as part of a broader
effort to combat the dangers posed by nuclear, bio-
logical and chemical weapons and the rockets that
can deliver them.
Some European members of NATO, including Ger-
many, have said it’s time for the U.S. to withdraw
its remaining Cold War era nuclear weapons from
Europe and cite Obama’s pledge in Prague last year
to seek a nuclear free world. Late last year, Ger-
many was joined by NATO members Belgium, the
Netherlands, Norway and Luxembourg in request-
ing that the nuclear issue be put on the agenda of the
Tallinn meeting.
But some newer NATO members in central and east-
ern Europe, which lay within Moscow’s orbit dur-
ing the Cold War, oppose a U.S. nuclear withdrawal.
They argue that the presence of the weapons is the
surest guarantee of their territorial integrity.
What is NATO
The North Atlantic Treaty Organization (NATO)
is an intergovernmental military alliance based on
the North Atlantic Treaty which was signed on 4
April 1949. The NATO headquarters are in Brus-
sels, Belgium, and the organization constitutes a
system of collective defence whereby its member
states agree to mutual defence in response to an at-
tack by any external party.
.
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Article : (The North Atlantic Treaty Organization )
For its first few years, NATO was not much more
than a political association. However, the Korean
War galvanized the member states, and an integrated
military structure was built up under the direction
of two U.S. supreme commanders. The first NATO
Secretary General, Lord Ismay, famously stated the
organization's goal was "to keep the Russians out,
the Americans in, and the Germans down". Doubts
over the strength of the relationship between the
European states and the United States ebbed and
flowed, along with doubts over the credibility of
the NATO defence against a prospective Soviet in-
vasion doubts that led to the development of the in-
dependent French nuclear deterrent and the with-
drawal of the French from NATO's military struc-
ture from 1966.
After the fall of the Berlin Wall in 1989, the orga-
nization became drawn into the Balkans while build-
ing better links with former potential enemies to
the east, which culminated with several former
Warsaw Pact states joining the alliance in 1999 and
2004. On 1 April 2009, membership was enlarged
to 28 with the entrance of Albania and Croatia. Since
the 11 September attacks, NATO has attempted to
refocus itself to new challenges and has deployed
troops to Afghanistan as well as trainers to Iraq.
The Berlin Plus agreement is a comprehensive pack-
age of agreements made between NATO and the
European Union on 16 December 2002. With this
agreement the EU was given the possibility to use
NATO assets in case it wanted to act independently
in an international crisis, on the condition that
NATO itself did not want to act the so-called "right
of first refusal". Only if NATO refused to act would
the EU have the option to act. The combined mili-
tary spending of all NATO members constitutes over
70% of the world's defence spending, with the United
States alone accounting for about half the total mili-
tary spending of the world and the United King-
dom, France, Germany, and Italy accounting for a
further 15%.
Beginnings
The Treaty of Brussels, signed on 17 March 1948
by Belgium, the Netherlands, Luxembourg, France
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and the United Kingdom is considered the precur-
sor to the NATO agreement. The treaty and the So-
viet Berlin Blockade led to the creation of the West-
ern European Union's Defence Organization in Sep-
tember 1948. However, participation of the United
States was thought necessary in order to counter the
military power of the USSR, and therefore talks for
a new military alliance began almost immediately.
These talks resulted in the North Atlantic Treaty,
which was signed in Washington, D.C. on 4 April
1949. It included the five Treaty of Brussels states,
as well as the United States, Canada, Portugal, Italy,
Norway, Denmark and Iceland. Popular support for
the Treaty was not unanimous; some Icelanders com-
menced a pro-neutrality, anti-membership riot in
March 1949.
The Parties of NATO agreed that an armed attack
against one or more of them in Europe or North
America shall be considered an attack against them
all. Consequently they agree that, if such an armed
attack occurs, each of them, in exercise of the right
of individual or collective self-defence will assist
the Party or Parties being attacked, individually and
in concert with the other Parties, such action as it
deems necessary, including the use of armed force,
to restore and maintain the security of the North
Atlantic area.
Such action as it deems necessary, including the use
of armed force does not necessarily mean that other
member states will respond with military action
against the aggressors. Rather they are obliged to
respond, but maintain the freedom to choose how
they will respond. This differs from Article IV of
the Treaty of Brussels (which founded the Western
European Union) which clearly states that the re-
sponse however often assumed that NATO mem-
bers will aid the attacked member militarily. Fur-
ther, the article limits the organization's scope to
Europe and North America, which explains why the
Falklands War did not result in NATO involvement.
The creation of NATO brought about some stan-
dardization of allied military terminology, proce-
dures, and technology, which in many cases meant
European countries adopting U.S. practices. The
roughly 1300 Standardization Agreements
(STANAGs) codifies the standardization that NATO
.
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Article : (The North Atlantic Treaty Organization )

has achieved. Hence, the 7.62×51 NATO rifle car- In 1954, the Soviet Union suggested that it should
tridge was introduced in the 1950s as a standard fire- join NATO to preserve peace in Europe. The NATO
arm cartridge among many NATO countries. countries, fearing that the Soviet Union's motive was
Fabrique Nationale de Herstal's FAL became the to weaken the alliance, ultimately rejected this pro-
most popular 7.62 NATO rifle in Europe and served posal. The incorporation of West Germany into the
into the early 1990s. Also, aircraft marshalling sig- organization on 9 May 1955 was described as "a
nals were standardized, so that any NATO aircraft decisive turning point in the history of our conti-
could land at any NATO base. Other standards such nent" by Halvard Lange, Foreign Minister of Nor-
as the NATO phonetic alphabet have made their way way at the time. A major reason for Germany's en-
beyond NATO into civilian use. try into the alliance was that without German man-
power, it would have been impossible to field
Cold War enough conventional forces to resist a Soviet inva-
sion. Indeed, one of its immediate results was the
creation of the Warsaw Pact, signed on 14 May 1955
The outbreak of the Korean War in 1950 was cru-
by the Soviet Union, Hungary, Czechoslovakia, Po-
cial for NATO as it raised the apparent threat level
land, Bulgaria, Romania, Albania, and East Ger-
greatly (all Communist countries were suspected of
many, as a formal response to this event, thereby
working together) and forced the alliance to develop
delineating the two opposing sides of the Cold War.
concrete military plans. The 1952 Lisbon confer-
French withdrawal
ence, seeking to provide the forces necessary for
NATO's Long-Term Defence Plan, called for an
The unity of NATO was breached early in its his-
expansion to 96 divisions. However this requirement
tory, with a crisis occurring during Charles de
was dropped the following year to roughly 35 divi-
Gaulle's presidency of France from 1958 onwards.
sions with heavier use to be made of nuclear weap-
De Gaulle protested at the United States' strong role
ons. At this time, NATO could call on about 15 ready
in the organization and what he perceived as a spe-
divisions in Central Europe, and another ten in Italy
cial relationship between the United States and the
and Scandinavia. Also at Lisbon, the post of Secre-
United Kingdom. In a memorandum sent to Presi-
tary General of NATO as the organization's chief
dent Dwight D. Eisenhower and Prime Minister
civilian was also created, and Baron Hastings Ismay
Harold Macmillan on 17 September 1958, he ar-
eventually appointed to the post. Later, in Septem-
gued for the creation of a tripartite directorate that
ber 1952, the first major NATO maritime exercises
would put France on an equal footing with the
began; Operation Mainbrace brought together 200
United States and the United Kingdom, and also for
ships and over 50,000 personnel to practice the de-
the expansion of NATO's coverage to include geo-
fence of Denmark and Norway.
graphical areas of interest to France, most notably
French Algeria, where France was waging a counter-
Greece and Turkey joined the alliance the same year,
insurgency and sought NATO assistance.
forcing a series of controversial negotiations, in
which the United States and Britain were the pri-
Considering the response given to be unsatisfactory,
mary disputants, over how to bring the two coun-
de Gaulle began to build an independent defence for
tries into the military command structure. Mean-
his country. He also wanted to give France, in the
while, while this overt military preparation was
event of an East German incursion into West Ger-
going on, covert stay-behind arrangements to con-
many, the option of coming to a separate peace with
tinue resistance after a successful Soviet invasion
the Eastern bloc instead of being drawn into a
('Operation Gladio'), initially made by the West-
NATO-Warsaw Pact global war. On 11 March 1959,
ern European Union, were being transferred to
France withdrew its Mediterranean Fleet from
NATO control. Ultimately unofficial bonds began
NATO command; three months later, in June 1959,
to grow between NATO's armed forces, such as the
de Gaulle banned the stationing of foreign nuclear
NATO Tiger Association and competitions such as
weapons on French soil. This caused the United
the Canadian Army Trophy for tank gunnery.

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Article : (The North Atlantic Treaty Organization )

States to transfer two hundred military aircraft out isters approved the deployment of U.S. GLCM cruise
of France and return control of the ten major air missiles and Pershing II theatre nuclear weapons in
force bases that had operated in France since 1950 Europe. The new warheads were also meant to
to the French by 1967. strengthen the western negotiating position regard-
ing nuclear disarmament. This policy was called the
Though France showed solidarity with the rest of Dual Track policy. Similarly, in 1983–84, respond-
NATO during the Cuban Missile Crisis in 1962, de ing to the stationing of Warsaw Pact SS-20 medium-
Gaulle continued his pursuit of an independent de- range missiles in Europe, NATO deployed modern
fence by removing France's Atlantic and Channel Pershing II missiles tasked to hit military targets
fleets from NATO command. In 1966, all French such as tank formations in the event of war. This
armed forces were removed from NATO's inte- action led to peace movement protests throughout
grated military command, and all non-French Western Europe.
NATO troops were asked to leave France. This with-
drawal forced the relocation of the Supreme Head- Escalation
quarters Allied Powers Europe (SHAPE) from
Rocquencourt, near Paris, to Casteau, north of Mons,
With the background of the build-up of tension be-
Belgium, by 16 October 1967. France remained a
tween the Soviet Union and the United States,
member of the alliance, and committed to the de-
NATO decided, under the impetus of the Reagan
fence of Europe from possible Communist attack
presidency, to deploy Pershing II and cruise mis-
with its own forces stationed in the Federal Repub-
siles in Western Europe, primarily West Germany.
lic of Germany throughout the Cold War. A series
These missiles were theatre nuclear weapons in-
of secret accords between U.S. and French officials,
tended to strike targets on the battlefield if the So-
the Lemnitzer-Ailleret Agreements, detailed how
viets invaded West Germany. Yet support for the
French forces would dovetail back into NATO's
deployment was wavering and many doubted
command structure should East-West hostilities
whether the push for deployment could be sustained.
break out.
On 1 September 1983, the Soviet Union shot down
a Korean passenger airliner when it crossed into
During most of the Cold War, NATO maintained a
Soviet airspace—an act which Reagan characterized
holding pattern with no actual military engagement
as a "massacre". The barbarity of this act, as the U.S.
as an organization. On 1 July 1968, the Nuclear
and indeed the world understood it, galvanized sup-
Non-Proliferation Treaty opened for signature:
port for the deployment—which stood in place un-
NATO argued that its nuclear sharing arrangements
til the later accords between Reagan and Mikhail
did not breach the treaty as U.S. forces controlled
Gorbachev.
the weapons until a decision was made to go to war,
at which point the treaty would no longer be con-
The membership of the organization at this time
trolling. Few states knew of the NATO nuclear shar-
remained largely static. In 1974, as a consequence
ing arrangements at that time, and they were not
of the Turkish invasion of Cyprus, Greece withdrew
challenged.
its forces from NATO's military command struc-
ture but, with Turkish cooperation, were readmit-
On 30 May 1978, NATO countries officially de-
ted in 1980. On 30 May 1982, NATO gained a new
fined two complementary aims of the Alliance, to
member when, following a referendum, the newly
maintain security and pursue détente. This was sup-
democratic Spain joined the alliance.
posed to mean matching defences at the level ren-
dered necessary by the Warsaw Pact's offensive ca-
In November 1983, NATO manoeuvres simulating
pabilities without spurring a further arms race.
a nuclear launch caused panic in the Kremlin. The
Soviet leadership, led by ailing General Secretary
On 12 December 1979, in light of a build-up of
Yuri Andropov, became concerned that the
Warsaw Pact nuclear capabilities in Europe, min-

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Article : (The North Atlantic Treaty Organization )
manoeuvres, codenamed Able Archer 83, were the
beginnings of a genuine first strike. In response,
Soviet nuclear forces were readied and air units in
East Germany and Poland were placed on alert.
Though at the time written off by U.S. intelligence
as a propaganda effort, many historians now believe
that the Soviet fear of a NATO first strike was genu-
ine.
Expansion and restructuring
New NATO structures were also formed while old
ones were abolished: The NATO Response Force
(NRF) was launched at the 2002 Prague summit on
21 November. On 19 June 2003, a major restructur-
ing of the NATO military commands began as the
Headquarters of the Supreme Allied Commander,
Atlantic were abolished and a new command, Al-
lied Command Transformation (ACT), was estab-
lished in Norfolk, Virginia, United States, and the
Supreme Headquarters Allied Powers Europe
(SHAPE) became the Headquarters of Allied Com-
mand Operations (ACO). ACT is responsible for
driving transformation (future capabilities) in
NATO, whilst ACO is responsible for current op-
erations.
As a result of post-Cold War restructuring of na-
tional forces, intervention in the Balkan conflicts,
and subsequent participation in Afghanistan, start-
ing in late 2003 NATO has restructured how it com-
mands and deploys its troops by creating several
NATO Rapid Deployable Corps.
Membership went on expanding with the ac-
cession of seven more Northern European and
Eastern European countries to NATO: Esto-
nia, Latvia and Lithuania and also Slovenia, Slovakia,
Bulgaria, and Romania. They were first invited to
start talks of membership during the 2002 Prague
Summit, and joined NATO on 29 March 2004,
shortly before the 2004 Istanbul summit. The same
month, NATO's Baltic Air Policing began, which
supported the sovereignty of Latvia, Lithuania and
Estonia by providing fighters to react to any un-
wanted aerial intrusions. Four fighters are based in
Lithuania, provided in rotation by virtually all the
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www.upscportal.com
NATO states. Operation Peaceful Summit tempo-
rarily enhanced this patrolling during the 2006 Riga
summit.
The 2006 Riga summit was held in Riga, Latvia,
which had joined the Atlantic Alliance two years
earlier. It is the first NATO summit to be held in a
country that was part of the Soviet Union, and the
second one in a former Comecon country (after the
2002 Prague summit). Energy Security was one of
the main themes of the Riga Summit. At the April
2008 summit in Bucharest, Romania, NATO agreed
to the accession of Croatia and Albania and invited
them to join. Both countries joined NATO in April
2009. Ukraine and Georgia were also told that they
will eventually become members.
Future Enlargement
New membership in the alliance has been largely
from Eastern Europe and the Balkans, including
former members of the Warsaw Pact.
At the 2008 summit in Bucharest, three coun-
tries were promised future invitations: the
Republic of Macedonia, Georgia and Ukraine.
Though it has completed the requirements for mem-
bership, the accession of Macedonia is blocked by
Greece, pending resolution of the Macedonia nam-
ing dispute. Turkey has also threatened to block an
attempt from Cyprus.[citation needed]
Other potential candidate countries include
Montenegro and Bosnia and Herzegovina, which
joined the Adriatic Charter of potential members in
2008. Russia, as referred to above, continues to op-
pose further expansion, seeing it as inconsistent with
understandings between Soviet leader Mikhail
Gorbachev and U.S. President George H. W. Bush
that allowed for a peaceful German reunification.
NATO's expansion policy is seen by Moscow as a
continuation of a Cold War attempt to surround and
isolate Russia.
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Signed New Strategic Arms

Reduction Treaty By: Ram Kumar Pandey
“The day after the U.S. elections, in his first state of the
nation address, that Russia would move to deploy short-
range Iskander missile systems in the western exclave
of Kaliningrad "to neutralize if necessary the anti-bal-
listic missile system in Europe.”
Presidents Barack Obama of the United States and nuclear armaments; and separate limit of 700 de-
Dmitry Medvedev of Russia signed a new Strategic ployed ICBMs, deployed SLBMs, and deployed
Arms Reduction Treaty for the reduction of their heavy bombers equipped for nuclear armaments.
nuclear weapons stockpiles on April 8, 2010.
The White House noted that the warheads on de-
The new START deal, which will last for ten years, ployed ICBMs and deployed SLBMs will count to-
was signed at a meeting in Prague, where President ward the limit and each deployed heavy bomber
Obama outlined his vision for nuclear disarmament equipped for nuclear armaments would count as one
and non-proliferation around a year ago. warhead toward this limit. The warhead limit itself
was 74 percent lower than the limit of the 1991
Speaking after the signing, President Obama said, START Treaty and 30 percent lower than the de-
“This day demonstrates the determination of the ployed strategic warhead limit of the 2002 Mos-
United States and Russia - the two nations that hold cow Treaty, a White House statement added. Fur-
over 90 percent of the world's nuclear weapons - to ther, the limit on launchers and bombers is less than
pursue responsible global leadership.” half the corresponding strategic nuclear delivery
vehicle limit of the previous START Treaty.
President Obama further said that the treaty would
significantly reduce missiles and launchers and puts In terms of verification and transparency, the new
in place a “strong and effective verification regime.” treaty has a verification regime that combines the
He added that it would also maintain the flexibility appropriate elements of the 1991 START Treaty
needed to protect and advance the U.S.’s national with new elements tailored to the limitations of the
security and guarantee its “unwavering commitment Treaty. In this regard, the White House also stated
to the security of our allies.” that measures under the new treaty include “on-site
inspections and exhibitions, data exchanges and no-
Describing the deal as a “win-win” for both coun- tifications related to strategic offensive arms and
tries, President Medvedev said, “This agreement facilities covered by the Treaty.”
enhances strategic ability and, at the same time, al-
lows us to rise to a higher level of cooperation be- The signing of the new treaty came two days after
tween Russia and the United States.” the announcement of the Obama administration of
Specifically, the treaty agrees to aggregate limits of its Nuclear Posture Review, in which the U.S. for-
1,550 warheads; a combined limit of 800 deployed swore nuclear attacks on all nuclear states compli-
and non-deployed Inter-Continental Ballistic Mis- ant with the Non-Proliferation treaty. However, the
sile launchers, Submarine-Launched Ballistic Mis- U.S. reiterated its commitment to maintaining a
sile launchers, and heavy bombers equipped for credible nuclear deterrent.

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START I or Strategic Arms
Reduction Treaty
START (for Strategic Arms Reduction Treaty) was
a bilateral treaty between the United States of
America and the Union of Soviet Socialist Repub-
lics (USSR) on the Reduction and Limitation of Stra-
tegic Offensive Arms. The treaty was signed on 31
July 1991 and entered into force on 5 December 1994
. The treaty was signed by the United States and the
USSR, that barred its signatories from deploying
more than 6,000 nuclear warheads atop a total of
1,600 ICBMs, submarine-launched ballistic mis-
siles, and bombers. START negotiated the largest
and most complex arms control treaty in history,
and its final implementation in late 2001 resulted
in the removal of about 80 percent of all strategic
nuclear weapons then in existence. Proposed by
United States President Ronald Reagan, it was re-
named START I after negotiations began on the sec-
ond START treaty, which became START II.
The START I treaty expired 5 December 2009. On
8 April 2010, the new START treaty was signed in
Prague by U.S. President Obama and Russian Presi-
dent Medvedev. It will enter into force after its rati-
fication through the parliaments of both countries.
The first START proposal was presented by United
States President Ronald Reagan in Geneva on 29 June
1982. Reagan proposed a dramatic reduction in stra-
tegic forces in two phases, which he referred to as
SALT III at the time. The first phase would reduce
overall warhead counts on any missile type to 5,000,
with an additional limit of 2,500 on ICBMs. Addi-
tionally, a total of 850 ICBMs would be allowed,
with a limit of 110 "heavy throw" missiles like the
SS-18, with additional limits on the total "throw
weight" of the missiles as well. The second phase
introduced similar limits on heavy bombers and
their warheads, and other strategic systems as well.
At the time the US had a commanding lead in stra-
tegic bombers. The US B-52 force, while aged, was
a credible strategic threat but was only equipped
with AGM-86 cruise missiles, beginning in 1982,
because of Soviet air defense improvements in early
1980s.
The US also had begun to introduce new B-1B Lancer
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quasi-stealth bomber and was secretly developing
the Advanced Technology Bomber (ATB) project
that would eventually result in the B-2 Spirit stealth
bomber. The USSR's force was of little threat to the
US, on the other hand, as it was tasked almost en-
tirely with attacking US convoys in the Atlantic and
land targets on the Eurasian landmass. Although the
USSR had 1,200 medium and heavy bombers, only
150 of them (Tupolev Tu-95s and Myasishchev M-
4s) could reach North America (the latter only with
in-flight refueling).
They also faced difficult problems in penetrating
admittedly smaller and poorly defended US airspace.
Possessing too few bombers available when com-
pared to US bomber numbers was evened out by the
US forces having to penetrate the much larger and
heavier defended Soviet airspace. This changed when
new Tu-95MS and Tu-160 bombers appeared in
1984 equipped with first Soviet AS-15 cruise mis-
siles. By limiting the phase-in as it was proposed,
the US would be left with a strategic advantage, for
a time.
As Time magazine put it at the time, "Under
Reagan's ceilings, the U.S. would have to make con-
siderably less of an adjustment in its strategic forces
than would the Soviet Union. That feature of the
proposal will almost certainly prompt the Soviets
to charge that it is unfair and one-sided.
No doubt some American arms-control advocates
will agree, accusing the Administration of making
the Kremlin an offer it cannot possibly accept a de-
ceptively equal-looking, deliberately nonnegotiable
proposal that is part of what some suspect is the
hardliners' secret agenda of sabotaging disarmament
so that the U.S. can get on with the business of rear-
mament." However, Time did point out that, "The
Soviets' monstrous ICBMs have given them a nearly
3-to-1 advantage over the U.S. in "throw weight"
the cumulative power to "throw" megatons of death
and destruction at the other nation."
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Negotiations nance and Regeneration Center at Davis-Monthan

Air Force Base in Arizona. The bombers were
stripped of all usable parts, then chopped into five
Continued negotiation of the START process was
pieces by a 13,000-pound steel blade dropped from
delayed several times because US agreement terms
a crane. The guillotine sliced four times on each
were considered non-negotiable by pre-Gorbachev
plane, severing the wings and leaving the fuselage
Soviet rulers. President Reagan's introduction of the
in three pieces. The ruined B-52s remained in place
Strategic Defense Initiative program in 1983 was
for three months so that Russian satellites could
viewed as a threat by the Soviet Union, and the So-
confirm that the bombers had been destroyed, after
viets withdrew from setting a timetable for further
which they were sold for scrap.
negotiations.
"It remains in effect between the U.S. and Russia,
Due to these facts, a dramatic nuclear arms race pro-
Belarus, Kazakhstan, and Ukraine. The latter three
ceeded during the 1980s, and essentially ended in
became non-nuclear weapons states under the Treaty
1991 by nuclear parity preservation at a level of
on the non-proliferation of Nuclear Weapons of July
more than ten thousand strategic warheads on both
1, 1968 (NPT) as they committed to do under the
sides. This treaty also stated that the United States
"Lisbon Protocol" (Protocol to the Treaty Between
and Russia would have 6,000 fighter aircraft, 10,000
the United States of America and the Union of So-
tanks, 20,000 artillery pieces and 2,000 attack heli-
viet Socialist Republics on the Reduction and Limi-
copters.
tation of Strategic Offensive Arms) after becoming
independent nations in the wake of the break up of
Ratification the Soviet Union."

It was signed on July 31, 1991, five months before Efficacy

the collapse of the Soviet Union. Entry-into-force
was delayed due to the collapse of the USSR and
Belarus, Kazakhstan and Ukraine have disposed of
awaiting an Annex that enforced the terms of the
all their nuclear weapons or transferred them to
treaty upon the newly independent states of Russia,
Russia; while the U.S. and Russia have reduced the
Belarus, Kazakhstan, and Ukraine. The latter three
capacity of delivery vehicles to 1,600 each, with no
agreed to transport their nuclear arms to Russia for
more than 6,000 warheads.
disposal.

It remains in effect between the U.S. and Russia,
Belarus, Kazakhstan, and Ukraine These latter three
have disarmed since becoming independent nations
in the wake of the break up of the Soviet Union.
Today, the United States has 3,696 and Russia has
4,237 deployed strategic warheads. The US has
roughly 10,000 total warheads, counting strategic
and tactical, both deployed and in reserves. The fig-
ures for Russia are less reliable, but are considered
to be in the range of 15,000 to 17,000 total war-
heads.
Implementation
365 B-52Gs were flown to the Aerospace Mainte-
Expiration and renewal
START I expired December 5, 2009. Both sides
agreed to continue observing the terms of the treaty
until a new agreement is reached. There are pro-
posals to renew and expand the treaty, supported by
U.S. President Barack Obama. Sergei Rogov, direc-
tor of the Institute of the U.S. and Canada, said:
"Obama supports sharp reductions in nuclear arse-
nals and I believe that Russia and the U.S. may sign
in the summer or fall of 2009 a new treaty that would
replace START-1".
He added that a new deal would only happen if
Washington abandoned plans to place elements of a
missile shield in central Europe. He expressed will-

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ingness "to make new steps in the sphere of disar-
mament," however, saying they were waiting for
the U.S. to abandon attempts to "surround Russia
with a missile defense ring." This referred to the
placement of ten interceptor missiles in Poland, as
well as an accompanying radar in the Czech Repub-
lic.
Russian President Dmitri Medvedev, said, the day
after the U.S. elections, in his first state of the na-
tion address, that Russia would move to deploy short-
range Iskander missile systems in the western ex-
clave of Kaliningrad "to neutralize if necessary the
anti-ballistic missile system in Europe." Russia in-
sists that any movement towards a new START
should be a legally binding document, and must,
then, set lower ceilings on the number of nuclear
warheads, and their delivery vehicles.
On March 17, 2009, Russian President Dmitri
Medvedev signaled that Russia would begin a "large-
scale" rearmament and renewal of Russia's nuclear
arsenal. President Medvedev accused NATO of push-
ing ahead with expansion near Russian borders and
ordered that this rearmament commence in 2011
with increased army, naval, and nuclear capabili-
ties. Additionally, the head of Russia's strategic
missile forces, Nikolai Solovtsov, told news agen-
cies that Russia would start deploying its next-gen-
eration RS-24 missiles after the December 5 expiry
of the START-1 treaty with the United States. Rus-
sia hopes to change the START-1 treaty with a new
accord. The increased tensions come despite the
warming of relations between the United States and
Russia ever since U.S. President Barack Obama took
office.
As of May 4, 2009, the United States and Russia
began the process of renegotiating START, as well
as counting both nuclear warheads and their deliv-
ery vehicles when making a new agreement. While
setting aside problematic issues between the two
countries, both sides agreed to make further cuts in
the number of warheads they have deployed to
around 1,000 to 1,500 each.
The United States has said they are open to a Rus-
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sian proposal to use radar in Azerbaijan rather than
Eastern Europe for the proposed missile system. The
Bush Administration was using the Eastern Europe
defense system as a deterrent for Iran, despite the
Kremlin's fear that it could be used against Russia.
The flexibility by both sides to make compromises
now will lead to a new phase of arms reduction in
the future.
A 'Joint understanding for a follow-on agreement
to START-1' was signed by Presidents Barack
Obama and Dmitri Medvedev in Moscow on 6 July
2009. This will reduce the number of deployed war-
heads on each side to 1,500–1,675 on 500–1,100
delivery systems. A new treaty was to be signed
before START-1 expired in December 2009 and the
reductions are to be achieved within seven years.
After many months of negotiations, Presidents
Obama and Medvedev signed the successor treaty,
Measures to Further Reduction and Limitation of
Strategic Offensive Arms, in Prague, Czech Repub-
lic on 8 April 2010.
START II
START II (for Strategic Arms Reduction Treaty) was
signed by United States President George H. W. Bush
and Russian President Boris Yeltsin on January 3,
1993, banning the use of MIRVs on ICBMs. Hence,
it is often cited as the De-MIRV-ing Agreement.
MIRVed land-based ICBMs are considered destabi-
lizing because they tend to put a premium on strik-
ing first. When a missile is MIRVed, it is able to
carry many warheads and deliver them to separate
targets and thereby possibly destroy more than one
missile of an enemy who does not strike first in their
silos.
The LGM-118 Peacekeeper missile was capable of
carrying up to 10 MIRVs. However, in 2001, Presi-
dent George W. Bush set a plan in motion to reduce
the country’s missile forces from 6,000 to between
1,700 and 2,200. Russian President Vladimir Putin
agreed to follow a similar plan and in October 2002
the deactivation of the Peacekeeper missile began
and was completed by 19 September 2005.
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The Minuteman III ICBM is the primary U.S. mis-
sile system and can carry up to 3 MIRVs. Hypo-
thetically, if one were to assume that each side had
100 missiles, with 5 warheads each, and further that
each side had a 95 percent chance of neutralizing
the opponent's missiles in their silos by firing 2
warheads at each silo, then the side that strikes first
can reduce the enemy ICBM force from 100 mis-
siles to about 5 by firing 40 missiles with 200 war-
heads and keeping the remaining 60 missiles in re-
serve. Thus the destruction capability is greatly in-
creased by MIRVs but the number of targets does
not increase.
any action supportive of the ABM Treaty. On June
14, 2002, one day after the U.S. withdrew from the
ABM Treaty, Russia announced that it would no
longer consider itself to be bound by START II pro-
visions.
The treaty was officially bypassed by the SORT
treaty, agreed to by Presidents George W. Bush and
Vladimir Putin at their summit meeting in Novem-
ber 2001, and signed at Moscow Summit on May
24, 2002. Both sides agreed to reduce operationally
deployed strategic nuclear warheads to 1,700 from
2,200 by 2012.

START II followed START I and, although ratified, START III

the treaty has never entered into force; in other words
never been activated. On June 14, 2002, one day af-
The third Strategic Arms Reduction Treaty, or
ter the U.S. withdrew from the Anti-Ballistic Mis-
START III, was a proposed Nuclear disarmament
sile Treaty, Russia withdrew from START II. The
treaty negotiated between the United States and
historic agreement started on June 17, 1992 with
Russia. It was never signed. It meant to drastically
the signing of a 'Joint Understanding' by the presi-
reduce the deployed nuclear weapons arsenals of
dents. The official signing of the treaty by the presi-
both countries. The treaty was meant to continue
dents took place on January 3, 1993. It was ratified
the weapons reduction efforts that had taken place
by the U.S. Senate on January 26, 1996 with a vote
in the START I and START II negotiations. The
of 87-4. However, Russian ratification was stalled
framework for negotiations of the treaty began with
in the Duma for many years. It was postponed a
talks in Helsinki between President Bill Clinton and
number of times to protest American invasion of
President Boris Yeltsin in 1997.
Iraq and military actions in Kosovo, as well as to
oppose the expansion of NATO.
Proposed basic elements of the treat included:
By December 31, 2007, coterminous with START
As the years passed, the treaty became less relevant
II, the United States and Russia would each deploy
and both sides started to lose interest in it. For the
no more than 2,000 to 2,500 strategic nuclear war-
Americans, the main issue became the modification
heads on intercontinental ballistic missiles, subma-
of the ABM Treaty to allow the U.S. to deploy a
rine-launched ballistic missiles, and heavy bomb-
national missile defense system, a move which Rus-
ers. Russian officials stated that they were willing
sia fiercely opposed. On April 14, 2000 the Duma
to consider negotiated levels as low as 1,500 strate-
did finally ratify the treaty, in a largely symbolic
gic nuclear warheads within the context of a START
move since the ratification was made contingent on
III agreement.
preserving the ABM Treaty, which it was clear the
The United States and Russia would negotiate mea-
U.S. was not prepared to do.
sures relating to the transparency of strategic
nuclear warhead inventories and the destruction of
START II did not enter into force because the Rus-
strategic nuclear warheads, as well as other jointly
sian ratification made this contingent on U.S. Sen-
agreed technical and organizational measures to
ate ratifying a September 1997 addendum to START
promote the irreversibility of deep reductions.
II which included agreed statements on ABM-TMD
demarcation. Neither of these occurred because of
The talks faced a number of obstacles. Russia op-
U.S. Senate opposition, where a faction objected to
posed the eastward expansion of NATO and Ameri-

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can plans to build a limited missile defense system
(which would have required changes to or the US
withdrawal from the 1972 Anti-Ballistic Missile
Treaty). Russia strongly hinted that any progress on
START III would be subject to the satisfaction of its
concerns on these issues. In addition, a Russian pro-
posal to reduce stockpiles still further to 1,000-1,500
warheads was opposed by the US Joint Chiefs of Staff.
Very little progress was made towards completing
negotiations on START III. President Clinton re-
vived the issue in 1999 and it played a role in the
2000 presidential elections, but persistent disagree-
ment, especially on the issue of missile defense, re-
sulted in stalemate. The 2002 decision by the Bush
Administration to withdraw from the Anti-Ballis-
tic Missile Treaty all but killed START III. It was
superseded by much the weaker SORT treaty.
SORT
The Treaty Between the United States of America
and the Russian Federation on Strategic Offensive
Reductions (SORT), better known as the Moscow
Treaty "represents an important element of the new
strategic relationship between the United States and
Russia". with both parties agreeing to limit their
nuclear arsenal to 1700–2200 operationally deployed
warheads each. It was signed in Moscow on May
24, 2002. SORT came into force on June 1, 2003
after the Bush-Putin ratification in St. Petersburg,
and expires on December 31, 2012. Either party can
withdraw from the treaty upon giving three months
written notice to the other.
Mutual nuclear disarma-
ment
SORT is the latest in a long line of treaties and ne-
gotiations on mutual nuclear disarmament between
Russia (and its predecessor the Soviet Union) and
the United States, which includes SALT I (1969–
1972), the ABM Treaty (1972), SALT II (1972–
1979), the INF Treaty (1987), START I (1991),
START II (1993), and START III, which died as of
the linkage to START II.
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The Moscow Treaty is different from START in that
it limits actual warheads, whereas START I limits
warheads only through declared attribution to their
means of delivery (ICBMs, SLBMs, and Heavy
Bombers). Russian and U.S. delegations meet twice
a year to discuss the implementation of the Mos-
cow Treaty at the Bilateral Implementation Com-
mission, or "BIC".
The treaty has been criticized for various reasons:
There are no verification provisions to give confi-
dence, to either the signatories or other parties, that
the stated reductions have in fact taken place.
The arsenal reductions are not required to be per-
manent; warheads are not required to be destroyed
and may therefore be placed in storage and later re-
deployed.
The arsenal reductions are required to be completed
by December 31, 2012, which is also the day on
which the treaty loses all force, unless extended by
both parties. This is why some experts joke that SORT
is only 'sort' of a treaty.
There exists a clause in the treaty which provides
that withdrawal can occur upon the giving of three
month's notice and since no benchmarks are required
in the treaty, either side could feasibly perform no
actions in furtherance of the treaty, and then simply
withdraw in September of 2012.
Implementation
Lawrence Livermore National Laboratory reported
that President Bush directed the US military to cut
its stockpile of both deployed and reserve nuclear
weapons in half by 2012. The goal was achieved in
2007, a reduction of US nuclear warheads to just
over 50 percent of the 2001 total. A further pro-
posal by Bush will bring the total down another 15%.
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Strategic Arms Limitation
Talks
The Strategic Arms Limitation Talks refers to two
rounds of bilateral talks and corresponding interna-
tional treaties involving the United States and the
Soviet Union-the Cold War superpowers on the is-
sue of armament control. There were two rounds of
talks and agreements: SALT I and SALT II. A subse-
quent treaty was START.
The first ever negotiations started in Helsinki, Fin-
land, in 1970. They were held during Apollo 12's
flight - four months after astronauts from Apollo
11 had returned safely home. Primarily focused on
limiting the two countries' stocks of nuclear weap-
ons, the treaties then led to START (Strategic Arms
Reduction Treaty). START I (a 1991 agreement be-
tween the United States and the Soviet Union) and
START II (a 1993 agreement between the United
States and Russia) which placed specific caps on each
side's number of nuclear weapons.
SALT I
SALT I is the common name for the Strategic Arms
Limitation Talks Agreement, also known as Strate-
gic Arms Limitation Treaty. SALT I froze the num-
ber of strategic ballistic missile launchers at exist-
ing levels, and provided for the addition of new sub-
marine-launched ballistic missile (SLBM) launch-
ers only after the same number of older interconti-
nental ballistic missile (ICBM) and SLBM launch-
ers had been dismantled.
The strategic nuclear forces niche of the Soviet Union
and the United States were changing in character in
1968. The U.S.'s total number of missiles had been
static since 1967 at 1,054 ICBMs and 656 SLBMs,
but there was an increasing number of missiles with
multiple independently targetable reentry vehicle
(MIRV) warheads being deployed. MIRV's carried
multiple nuclear warheads, often with dummies, to
confuse ABM systems, making MIRV defence by
ABM systems increasingly difficult and expensive.
One clause of the treaty required both countries to
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limit the number of sites protected by an anti-bal-
listic missile (ABM) system to two each. The So-
viet Union had deployed such a system around Mos-
cow in 1966 and the United States announced an
ABM program to protect twelve ICBM sites in 1967.
A modified two-tier Moscow ABM system is still
used. The U.S. built only one ABM site to protect
Minuteman base in North Dakota where the "Safe-
guard Program" was deployed. Due to the system's
expense and limited effectiveness, the Pentagon dis-
banded "Safeguard" in 1975.
Negotiations lasted from November 17, 1969 until
May 1972 in a series of meetings beginning in
Helsinki, with the U.S. delegation headed by Gerard
C. Smith, director of the Arms Control and Disar-
mament Agency. Subsequent sessions alternated
between Vienna and Helsinki. After a long dead-
lock, the first results of SALT I came in May 1971,
when an agreement was reached over ABM systems.
Further discussion brought the negotiations to an
end on May 26, 1972 in Moscow when Richard
Nixon and Leonid Brezhnev signed the Anti-Ballis-
tic Missile Treaty and the Interim Agreement Be-
tween The United States of America and The Union
of Soviet Socialist Republics on Certain Measures
With Respect to the Limitation of Strategic Offen-
sive Arms. A number of agreed statements were also
made. This helped improve relations between the
USA and the USSR.
SALT II
It was a controversial experiment of negotiations
between Jimmy Carter and Leonid Brezhnev from
1977 to 1979 between the U.S. and the Soviet Union,
which sought to curtail the manufacture of strate-
gic nuclear weapons. It was a continuation of the
progress made during the SALT I talks. SALT II was
the first nuclear arms treaty which assumed real
reductions in strategic forces to 2,250 of all catego-
ries of delivery vehicles on both sides.
SALT II helped the U.S. to discourage the Soviets
from arming their third generation ICBMs of SS-
17, SS-19 and SS-18 types with many more MIRVs.
In the late 1970s the USSR's missile design bureaus
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had developed experimental versions of these mis-
siles equipped with anywhere from 10 to 38 ther-
monuclear warheads each. Additionally, the Sovi-
ets secretly agreed to reduce Tu-22M production to
thirty aircraft per year and not to give them an in-
tercontinental range.
It was particularly important for the US to limit
Soviet efforts in the Intermediate-Range Nuclear
Forces (INF) rearmament area. The SALT II Treaty
banned new missile programs (a new missile de-
fined as one with any key parameter 5% better than
in currently deployed missiles), so both sides were
forced to limit their new strategic missile types de-
velopment although US preserved their most essen-
tial programs like Trident and cruise missiles, which
President Carter wished to use as his main defen-
sive weapon as they were too slow to have first strike
capability. In return, the USSR could exclusively
retain 308 of its so-called "heavy ICBM" launchers
of the SS-18 type.
An agreement to limit strategic launchers was
reached in Vienna on June 18, 1979, and was signed
by Leonid Brezhnev and President of the United
States Jimmy Carter. In response to the refusal of
the U.S. Congress to ratify the treaty, a young mem-
ber of the Senate Foreign Relations Committee,
Senator Joseph Biden of Delaware, met with the
Soviet Foreign Minister Andrey Gromyko, "edu-
cated him about American concerns and interests"
and secured several changes that neither the U.S.
Secretary of State nor President Jimmy Carter could
obtain.
Six months after the signing, the Soviet Union de-
ployed troops to Afghanistan, and in September of
the same year senators including Henry M. Jackson
and Frank Church discovered the so-called "Soviet
brigade" on Cuba. In light of these developments,
the treaty was never formally ratified by the United
States Senate. Its terms were, nonetheless, honored
by both sides until 1986 when the Reagan Adminis-
tration withdrew from SALT II after accusing the
Soviets of violating the pact.
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Subsequent discussions took place under the Strate-
gic Arms Reduction Treaty (START) and the Com-
prehensive Test Ban Treaty.
USA/USSR Arms Limitation
Treaties
» Partial or Limited Test Ban Treaty (PTBT/
LTBT): 1963. Also put forth by Kennedy; banned
nuclear tests in the atmosphere, underwater and in
space. However, neither France nor China (both
Nuclear Weapon States) signed.
» Nuclear Non-Proliferation Treaty (NPT):
1968. Established the U.S., USSR, UK, France, and
China as five "Nuclear-Weapon States". Non-
Nuclear Weapon states were prohibited from
(among other things) possessing, manufacturing, or
acquiring nuclear weapons or other nuclear explo-
sive devices. All 187 signatories were committed
to the goal of (eventual) nuclear disarmament.
» Anti-Ballistic Missile Treaty (ABM): 1972.
Entered into between the U.S. and USSR to limit
the anti-ballistic missile (ABM) systems used in
defending areas against missile-delivered nuclear
weapons; ended by the US in 2002.
» Strategic Arms Limitation Treaties I & II
(SALT I & II): 1972 / 1979. Limited the growth of
US and Soviet missile arsenals.
» Prevention of Nuclear War Agreement:
1973. Committed the U.S. and USSR to consult with
one another during conditions of nuclear confron-
tation.
» Threshold Test Ban Treaty: 1974. Capped
Nuclear tests at 150 kilotons.
» Intermediate-Range Nuclear Forces Treaty
(INF): 1987. Eliminated nuclear and conventional
ground-launched ballistic and cruise missiles with
intermediate ranges, defined as between 500-5,500
km (300-3,400 miles)
» Strat eg ic A rms Re duct ions Treat y I
(START I): 1991. This was signed by George H.
W. Bush and Mikhail Gorbachev; reduced the num-
bers of U.S. and Soviet long-range missiles and
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nuclear warheads from 10,000 per side to 6,000 per

side.
» Mutual Detargeting Treaty (MDT): 1994.
U.S. and Russian missiles no longer automatically
target the other country; nuclear forces are no longer
operated in a manner that presumes that the two
nations are adversaries.

» St rat egic A rms Reduct ions Treaty II

(START II): 1993. Will reduce the numbers of U.S.
and Russian long-range missiles and nuclear war-
heads from 6,000 per side to 3,500-3,000 per side.
(START III proposed for 2007).

Comprehensive Test Ban Treaty (CTBT) 1996. Pro-

hibits all nuclear test explosions in all environments;
signed by 180 states, and ratified by 148. The United
States has signed, but not ratified, the CTBT.

Strategic Offensive Reductions Treaty (SORT/Mos-

cow Treaty (2002)). Established bilateral strategic
nuclear arms reductions and a new "strategic nuclear
framework"; also invited all countries to adopt non-
proliferation principles aimed at preventing terror-
ists, or those that harbored them, from acquiring or
developing all types of WMD's and related materi-
als, equipment, and technology.

www.upscportal.com
 United Nations Report on
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Toxic Electronic Waste
According to a United Nations re-
port released recently Developing
countries face increasing environ-
mental and health hazards from
electronic waste unless toxic ma-
terials are collected and recycled properly.
The report highlights the problem of recycling and
salvaging procedures in poorer countries, often in
unsafe conditions by unregulated operators. Sales
of electronic devices are set to rise sharply in the
next 10 years, particularly in emerging economies
such as China and India, the United Nations Envi-
ronment Program (UNEP) said.
According to report, titled Recycling - from E-
Waste to Resources, the world produces about 40
million tons of waste from electronic devices,
known as e-waste, every year.
Main Feature
Experts said exposure to toxic chemicals from e-
waste - including lead, cadmium, mercury, chro-
mium and polybrominated biphenyls - can dam-
age the brain and nervous system, affect the kid-
neys and liver, and cause birth defects.
The report was launched in Indonesia’s resort is-
land of Bali. It used data from 11 developing coun-
tries to estimate current and future e-waste gen-
eration from discarded computers, printers, mo-
bile phones, pagers, cameras, music players, refrig-
erators, toys, televisions and other items.
www.upscportal.com
China produces an estimated 2.3 million tons of e-
waste annually, and though the country has banned
e-waste imports, it remains a major dumping
ground for waste from developed countries, the
report said.
The UN research predicts that in South Africa and
China, e-waste from old computers may jump by
200 to 400 per cent from 2007 levels and by 500
per cent in India.
E-waste from mobile phones in the same period is
forecast to rise seven times in China, and 18 times
in India.
According to the report, over 1 billion mobile
phones were sold in 2007 worldwide, up from 896
million in 2006.
The report said most e-waste in China was improp-
erly handled, with much of it incinerated by back-
yard recyclers to recover valuable metals like gold.
Jim Pucket of the Basel Action Network, a non-
governmental organization fighting the interna-
tional trade in toxic wastes, said massive amounts
of discarded devices had been exported to China
for years.
But China is not alone in facing the serious e-waste
problem. India, Brazil, Mexico and others may also
face rising environmental damage and health prob-
lems if e-waste recycling is left to the vagaries of
the informal sector.
Report urged governments to establish e-waste
management centres, building on existing organi-
Downloaded from: http://www.upscportal.com
zations working in the area of recycling and waste
management.
What is Electronic Waste
Electronic waste, e-waste, e-scrap, or Waste Elec-
trical and Electronic Equipment (WEEE) describes
loosely discarded, surplus, obsolete, broken, elec-
trical or electronic devices. The processing of elec-
tronic waste in developing countries causes seri-
ous health and pollution problems because elec-
tronic equipment contains some very serious con-
taminants such as lead, cadmium, beryllium and
brominated flame retardants. Even in developed
countries recycling and disposal of e-waste involves
significant risk to workers and communities and
great care must be taken to avoid unsafe exposure
in recycling operations and leaching of material
such as heavy metals from landfills and incinera-
tor ashes.
Problems
Rapid technology change, low initial cost, and
planned obsolescence have resulted in a fast-grow-
ing surplus of electronic waste around the globe.
Dave Kruch, CEO of Cash For Laptops, regards
electronic waste as a "rapidly expanding" issue.
Technical solutions are available, but in most cases
a legal framework, a collection system, logistics,
and other services need to be implemented before
a technical solution can be applied. An estimated
50 million tonnes of E-waste is produced each year.
The USA discards 30 million computers each year
and 100 million phones are disposed of in Europe
each year.
In the United States, an estimated 70% of heavy
metals in landfills comes from discarded electron-
ics, while electronic waste represents only 2% of
America's trash in landfills. The EPA states that
unwanted electronics totaled 2 million tons in 2005.
Discarded electronics represented 5 to 6 times as
much weight as recycled electronics.
The Consumer Electronics Association says that
U.S. households spend an average of $1,400 annu-
ally on an average of 24 electronic items, leading
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to speculations of millions of tons of valuable met-
als sitting in desk drawers. The U.S. National Safety
Council estimates that 75% of all personal com-
puters ever sold are now gathering dust as surplus
electronics. While some recycle, 7% of cellphone
owners still throw away their old cellphones.
Surplus electronics have extremely high cost dif-
ferentials. A single repairable laptop can be worth
hundreds of dollars, while an imploded cathode
ray tube (CRT) is extremely difficult and expen-
sive to recycle. This has created a difficult free-
market economy. Large quantities of used electron-
ics are typically sold to countries with very high
repair capability and high raw material demand,
which can result in high accumulations of residue
in poor areas without strong environmental laws.
Trade in electronic waste is controlled by the Basel
Convention. The Basel Convention Parties have
considered the question of whether exports of haz-
ardous used electronic equipment for repair or re-
furbishment are considered as Basel Convention
hazardous wastes, subject to import and export
controls under that Convention. In the Guidance
document produced on that subject, that question
was left up to the Parties, however in the working
group all of the Parties present believed that when
material is untested, or contains hazardous parts
that would need to be replaced as part of the re-
pair process, then the Convention did apply.
Like virgin material mining and extraction, recy-
cling of materials from electronic scrap has raised
concerns over toxicity and carcinogenicity of some
of its substances and processes. Toxic substances
in electronic waste may include lead, mercury, and
cadmium. Carcinogenic substances in electronic
waste may include polychlorinated biphenyls
(PCBs). Capacitors, transformers, and wires insu-
lated with or components coated with polyvinyl
chloride (PVC), manufactured before 1977, often
contain dangerous amounts of PCBs.
Up to 38 separate chemical elements are incorpo-
rated into electronic waste items. Many of the plas-
tics used in electronic equipment contain flame
retardants. These are generally halogens added to
the plastic resin, making the plastics difficult to
Downloaded from: http://www.upscportal.com
recycle. Due to the flame retardants being addi-
tives, they easily leach off the material in hot
weather, which is a problem because when dis-
posed of, electronic waste is generally left outside.
The flame retardants leach into the soil and re-
corded levels were 93 times higher than soil with
no contact with electronic waste.[12] The
unsustainability of discarding electronics and com-
puter technology is another reason commending
the need to recycle or to reuse electronic waste.
When materials cannot or will not be reused, con-
ventional recycling or disposal via landfill often
follow. Standards for both approaches vary widely
by jurisdiction, whether in developed or develop-
ing countries. The complexity of the various items
to be disposed of, the cost of environmentally ap-
proved recycling systems, and the need for con-
cerned and concerted action to collect and system-
atically process equipment are challenges. One
study indicates that two thirds of executives are
unaware of fines related to environmental regula-
tions.
Hotspots
Increased regulation of electronic waste and con-
cern over the environmental harm, which can re-
sult from toxic electronic waste, has raised disposal
costs. The regulation creates an economic disin-
centive to remove residues prior to export. In ex-
treme cases, brokers and others calling themselves
recyclers export unscreened electronic waste to
developing countries, avoiding the expense of re-
moving items like bad cathode ray tubes, the pro-
cessing of which is expensive and difficult.
Defenders of the trade in used electronics say that
extraction of metals from virgin mining has also
been shifted to developing countries. Hard-rock
mining of copper, silver, gold and other materials
extracted from electronics is considered far more
environmentally damaging than the recycling of
those materials. They also state that repair and re-
use of computers and televisions has become a "lost
art" in wealthier nations, and that refurbishing has
traditionally been a path to development. South
Korea, Taiwan, and southern China all excelled in
www.upscportal.com
finding "retained value" in used goods, and in some
cases have set up billion-dollar industries in refur-
bishing used ink cartridges, single-use cameras, and
working CRTs. Refurbishing has traditionally been
a threat to established manufacturing, and simple
protectionism explains some criticism of the trade.
Works like "The Waste Makers" by Vance Packard
explain some of the criticism of exports of work-
ing product, for example the ban on import of
tested working Pentium 4 laptops to China, or the
bans on export of used surplus working electron-
ics by Japan.
Opponents of surplus electronics exports argue that
lower environmental and labor standards, cheap
labor, and the relatively high value of recovered
raw materials leads to a transfer of pollution-gen-
erating activities, such as burning of copper wire.
In China, Malaysia, India, Kenya, and various Af-
rican countries, electronic waste is being sent to
these countries for processing, sometimes illegally.
Many surplus laptops are routed to developing na-
tions as dumping grounds for e-waste.
Because the United States has not ratified the Basel
Convention or its Ban Amendment, and has no
domestic laws forbidding the export of toxic waste,
the Basel Action Network estimates that about 80%
of the electronic waste directed to recycling in the
U.S. does not get recycled there at all, but is put on
container ships and sent to countries such as China.
This figure is disputed as an exaggeration by the
EPA, the Institute for Scrap Recycling Industries,
and the World Reuse, Repair and Recycling Asso-
ciation.
Guiyu in the Shantou region of China, Delhi and
Bangalore in India as well as the Agbogbloshie site
near Accra, Ghana have electronic waste process-
ing areas. Uncontrolled burning, disassembly, and
disposal can cause a variety of environmental prob-
lems such as groundwater contamination, atmo-
spheric pollution, or even water pollution either
by immediate discharge or due to surface runoff
(especially near coastal areas), as well as health
problems including occupational safety and health
effects among those directly involved, due to the
methods of processing the waste. Thousands of
Downloaded from: http://www.upscportal.com
men, women, and children are employed in highly
polluting, primitive recycling technologies, extract-
ing the metals, toners, and plastics from comput-
ers and other electronic waste.
Proponents of the trade say growth of internet
access is a stronger correlation to trade than pov-
erty. Haiti is poor and closer to the port of New
York than southeast Asia, but far more electronic
waste is exported from New York to Asia than to
Haiti. Thousands of men, women, and children are
employed in reuse, refurbishing, repair, and
remanufacturing, sustainable industries in decline
in developed countries. It is held that denying de-
veloping nations access to used electronics denies
them affordable products and internet access.
Opponents of the trade argue that developing coun-
tries utilize methods that are more harmful and
more wasteful. An expedient and prevalent method
is simply to toss equipment onto an open fire, in
order to melt plastics and to burn away unvaluable
metals. This releases carcinogens and neurotoxins
into the air, contributing to an acrid, lingering
smog. These noxious fumes include dioxins and
furans. Bonfire refuse can be disposed of quickly
into drainage ditches or waterways feeding the
ocean or local water supplies.
In June 2008, a container of electronic waste, des-
tined from the Port of Oakland in the U.S. to
Sanshui District in mainland China, was inter-
cepted in Hong Kong by Greenpeace. Concern over
exports of electronic waste were raised in press
reports in India, Ghana, Ivory Coast, and Nigeria.
Recycling
Today the electronic waste recycling business is in
all areas of the developed world a large and rap-
idly consolidating business. Electronic waste pro-
cessing systems have matured in recent years, fol-
lowing increased regulatory, public, and commer-
cial scrutiny, and a commensurate increase in en-
trepreneurial interest. Part of this evolution has
involved greater diversion of electronic waste from
energy-intensive down cycling processes (e.g., con-
www.upscportal.com
ventional recycling), where equipment is reverted
to a raw material form.
This diversion is achieved through reuse and re-
furbishing. The environmental and social benefits
of reuse include diminished demand for new prod-
ucts and virgin raw materials (with their own en-
vironmental issues); larger quantities of pure wa-
ter and electricity for associated manufacturing;
less packaging per unit; availability of technology
to wider swaths of society due to greater
affordability of products; and diminished use of
landfills.
Audiovisual components, televisions, VCRs, ste-
reo equipment, mobile phones, other handheld
devices, and computer components contain valu-
able elements and substances suitable for reclama-
tion, including lead, copper, and gold.
Electronic Waste Substances
Some computer components can be reused in as-
sembling new computer products, while others are
reduced to metals that can be reused in applica-
tions as varied as construction, flatware, and jew-
elry.
Substances found in large quantities include ep-
oxy resins, fiberglass, PCBs, PVC, thermosetting
plastics, lead, tin, copper, silicon, beryllium, car-
bon, iron and aluminium.
Elements found in small amounts include cad-
mium, mercury, and thallium.
Elements found in trace amounts include ameri-
cium, antimony, arsenic, barium, bismuth, boron,
cobalt, europium, gallium, germanium, gold, in-
dium, lithium, manganese, nickel, niobium, palla-
dium, platinum, rhodium, ruthenium, selenium,
silver, tantalum, terbium, thorium, titanium, va-
nadium, and yttrium.
Almost all electronics contain lead and tin (as sol-
der) and copper (as wire and printed circuit board
tracks), though the use of lead-free solder is now
spreading rapidly.
 Winners
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Featured Article
speech as well as amount of money that comes

of
freedom of assem- with it.
bly. This year there China is of course angry at
were a record num- the Nobel commi7ee for award-
ber of nomina6ons ing the pres6gious award to Liu
for the Nobel Peace Xiaobo. Obama has called on the

Nobel
Prize at a staggering chine government to release the
two hundred and prisoner.
thirty seven. Last
year President Bar-

Prize
rack Obama won a The Nobel Prize in
Nobel Peace Prize Physics 2010
for his extraordi-
nary efforts in The Nobel Prize in Physics 2010

2010
strengthening inter- was awarded jointly to Andre
na6onal diplomacy.
The Nobel Peace
Prize awarded to Liu
Xiaobo is the fi'h

Nobel Peace Prize

Winner 2010 :
Liu XiaoboI
In Oslo, it was announced that
Chinese ac6vist and writer Liu Xi-
aobo has won a Nobel Peace
Prize. It has been reported that
the writer and ac6vist was cho-
sen for the award because of his
constant ba7le for human rights.
The commi7ee who chose the
winners of the awards stated that
there is a close connec6on be-
tween peace and human rights,
hence Liu being awarded the cov-
eted prize which is worth one
point five million dollars.
The Nobel Prize winner is cur-
rently serving an eleven year
prison sentence for inci6ng sub-
version of state power in China.
The commi7ee chairman, Thorb-
jorn Jagland said that China was
in breach of several interna6onal
conven6ons such as freedom of
award in two thousand and ten.
The other awards which are for
medicine, physics, chemistry, and
literature were announced to the
public earlier on in the week.
There are usually many nomina-
6ons for Nobel Peace Prizes each
year, but this year it was more
than most, as men6oned above.
Those lucky enough to win not
only have the privilege of winning
the award, but also the huge
Geim and Konstan6n Novoselov
"for groundbreaking experiments
regarding the two-dimensional
material graphene"
Nobel Prize for medicine
The intensely modest Bri6sh sci-
en6st who pioneered IVF has
been honoured with a ‘long over-
due’ Nobel prize for medicine.
Just seven years ago Robert
Edwards joked that he wasn’t
bothered about being overlooked
for a knighthood, but a Nobel
would be nice.
Professor Edwards, emeritus
professor of human reproduc6on
at Cambridge University, was her-

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alded as the creator of modern
reproduc6ve medicine.
His work with gynaecologist and
fellow Briton Dr Patrick Steptoe
led to the birth in July 1978 of
Louise Brown, the world’s first
‘test tube baby’.
Their research came against a
backdrop of significant opposi-
6on from the medical and reli-
gious establishments. They
persevered, however, and in vitro
fer6lisa6on – whereby human
eggs are fer6lised outside the
body and then implanted in the
womb – has since resulted in
4.3million births worldwide.
The Nobel prize commi7ee in
Stockholm said Professor Ed-
wards’s ‘achievements have
made it possible to treat infer6l-
ity, a medical condi6on afflic6ng
a large propor6on of humanity’.
Nobel Literature Prize
Peruvian writer Mario Vargas
Llosa has won the 2010 Nobel
prize for literature. The Nobel
Prize commi7ee said in a state-
ment Vargas Llosa received the
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award "for his cartography of
structures of power and his
trenchant images of the individ-
ual's resistance, revolt and de-
feat".
The 74-year-old writer is the
first South American to win the
Nobel since Colombian magic-re-
alist innovator Gabriel Garcia
Marquez in 1982. Mexico's Oc-
tavio Paz won the prize in 1990.
Like Paz and many other La6n
American authors, Vargas Llosa
has dabbled in poli6cs over the
years. He even ran, unsuccess-
fully, for the the Peruvian presi-
dency in 1990.
From the publica6on of his
first novel, 1963 -- The Time of
the Hero, based on his experi-
ences at a Peruvian military acad-
emy, Vargas Llosa is recognized as
a leading figure in the La6n Amer-
ican literature in the second half
of the 20th century.
He has wri7en essays, non-
fic6on, and fic6on in a wide vari-
ety of genres and styles. The
Green House is widely considered
among his best works. It is a non-
chronological account of unrest
in Peru centered on the desert
brothel of the 6tle.
The bi7er 1969 novel Conver-
sa6ons in the Cathedral embeds
a cri6que of the dictatorship of
Peruvian president Manuel Odria
in the story of one man's search
for the truth about his minister
father's role in the murder of a
notorious underworld figure.
In the 2000 novel The Feast
of the Goat (published in the U.S.
in 2002), Vargas Llosa makes a
startlingly unsympathe6c, Shake-
speare-worthy villain of Rafael
Trujillo, the real-life military des-
pot who ruled the Dominican Re-
public from 1930-61.
Many Americans may know
Vargas Llosa best for his 1977
comic novel, Aunt Julia and the
Screenwriter, which was adapted
into American director Jon
Amiel's widely praised movie
Tune in Tomorrow, starring Peter
Falk as a larger-than-life creator
of radio soap operas who manip-
ulates the May-December rela-
6onship of a young aspiring
writer (Keanu Reeves) and his
older, twice-divorced aunt by
marriage (Barbara Hershey).
(EW's Owen Gleiberman said the
film "crackles with roman6c
heat.")
Nobel Prize in Chemistry
Two Japanese scien6sts and an
American researcher won the
Nobel Prize in Chemistry for de-
veloping chemical reac6ons that
help create large quan66es of or-
ganic substances that can be used
for medicine.
Richard F. Heck of the Univer-
sity of Delaware in Newark,
Delaware, Akira Suzuki, 80, of
Hokkaido University in Sapporo,
Japan, and Ei-Ichi Negishi, 75 of
Purdue University in West
. . Vol. - 19
Downloaded From: http://www.upscportal.com
Lafaye7e, Indiana, will share the
10 million-kronor ($1.5 million)
award, the Royal Swedish Acad-
emy of Sciences said at a press
conference in Stockholm.
Last year’s prize in chemistry
went to Venkatraman Ramakrish-
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nan, of the United Kingdom;
Thomas A. SteitzThomas A.
Steitz, of the United States; and
Ada E. Yonath, of Israel, for their
work on how the DNA code is
translated into life, findings that
have been used to fight infec6ous
disease.
Nobel Economic Prize
Peter Diamond, Dale Mortensen
Dale Mortensen and Christopher
Pissarides won the 2010 Nobel
Prize in Economics Sciences.
Peter Diamond, Dale Mortensen
and Christopher Pissarides re-
ceived the 2010 Nobel Prize in
Economics Sciences for their re-
search on efficacy of service and
compensa6on model. Peter Dia-
mond had also made contribu-
6ons to the labor-market
considera6ons along with the
other two scien6sts that finally
led them to win the Nobel Prize
for Economic Sciences 2010.
Now that Peter Diamond
marked his name on the Nobel
Prize in economics Shelby must
rethink his objec6on. Shelby, in
fact, by no means said that Peter
Diamond was not a good econo-
mist. He actually held that Peter
Diamond has no idea of mone-
tary economics. That too is a fool-
ish idea in itself.
“Peter Diamond has analyzed
the founda6ons of search mar-
kets. Dale Mortensen and
Christopher Pissarides have ex-
panded the theory and have ap-
plied it to the labor market. The
laureates’ models help us under- Peter Diamond is seventy
stand the ways in which unem- years old. Peter Diamond is an
ployment, job vacancies, and economics professor at the Mas-
wages are affected by regula6on sachuse7s Ins6tute of Technol-
and economic policy”, said the ogy. Peter Diamond has
Royal Swedish Academy of Sci- conducted many researches on a
ences. wide range of topics.
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16th SAARC Summit

Towards a Green and Happy South Asia
Avadhesh Kumar Pandey

The 16th SAARC (South Asia association of Regional Coopera-

tion) summit concluded in the capital of Bhutan. The theme of the
summit was “Towards a green and happy south Asia”. South Asia
is the home of 1.5 billion people, which comprise eight nations,
namely India, Pakistan, Nepal, Bhutan, Maldives, Sri Lanka and
Afghanistan. This is the silver jubilee year of SAARC. According
to a World Bank report the 2/3rd people of south Asia live on less then 2 dollar per day. Certainly, it is far
behind from the other regional organizations when compared about the progress and development of the
region.
In the summit, the leaders of member countries rightly raised this issue. First, our Prime Minister, Man
Mohan Singh called the 25-year long journey of SAARC, “a glass half empty” then Bhutan’s PM Jigmi Y
Thinley said that SAARC is losing its focus from core issues, such as poverty, food security etc. In one sense
these statements are true, as there are many bilateral issues between member countries which used to
affect the multilateral efforts and initiatives of the developments, e.g. India-Pakistan relations have always
overshadowed the SAARC summits and this time also the summit started with the huge speculations of
Indo-Pak meets at the sidelines of the summit. Though, according to SAARC charter, bilateral issues
cannot be raised on its forum, still the mere possibilities of Indo-Pak high level meet used to occupy a lot
of space of the summit’s unofficial or official agenda. This fact is clear through the comment of Mohammad
Nasheed, president of Maldives, he said, “the summit will lead to a greater dialogue between India and
Pakistan”. The state heads of Bangladesh, Sri Lanka and Bhutan also expressed the similar views. President
Nasheed also asked for the more focus on important issues which are related to SAARC nations and their
problems which used to be overshadowed by the Indo-Pak stern relation.

One more issue, which has maintained gap between members, is the “India factor”. India has geographi-
cally, economically and politically a big brother image among the rest member countries of SAARC. All
the nations of south Asia are connected geographically with India (Afghanistan through POK). Only
Maldives, the island nation has no land connectivity with India. This big brother image has always raised
negative thoughts and fears among the other members, the political parties have frequently used the anti-
India card to raise the public emotions, e.g. in Nepal, Bangladesh, Sri Lanka and off course Pakistan. This
insecurity has provided a suitable opportunity for big powers to intervene in south Asia. Besides, ethnic,
language, border and water disputes between the members, it has also created set-backs among bilateral
and multilateral relations.

However, some significant events took place in Thimphu. The landmark decision was the announcement
of a fund by Indian PM, to meet with the challenges of climate change and to cater for the needs of
effective adaptation and capacity building of small nations. Though no proper action plan for climate
change was drafted, still this is an important initiative as all the nations of south Asia are facing serious
threats of global warming, such as, glacial melting, frequent cyclones, floods and droughts.

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The next important event of summit was the Indo-
Pak meeting on 29th April, between Prime Minis-
ter Man Mohan Singh and his counter part Yusuf
Raza Gilani. It was the first meeting of both lead-
ers after the one in Sharm- el –Sheikh in July 2009.
In the meeting, India insisted on Pak to take some
credential action against the 26/11 perpetrates, LeT
and Hafeez Saeed, the mastermind of the Mumbai
attack. India refused to start the conventional form
of composite dialogue that is based on eight issues.
Pakistan’s emphasis remained on delinking of ter-
ror from talks and an immediate return of com-
posite dialogue. However, India rejected this offer
and no joint statement took place, but the positive
side of talks was that both sides agreed to keep the
dialogue process open and decided to meet as soon
as possible at Foreign Ministers’ level and at for-
eign secretary level.
Besides above developments, the 16th SAARC
summit lacked behind on many issues. No progress
took place on SAFTA (south Asia free trade agree-
ment), nor the leaders of south Asia tried to find
out any regional solution of Afghan problem.
Though in a joint statement released by prime
Minister Man Mohan Singh and President Karzai,
Dr. Singh supported an “ Afghan-led , Afghan-
owned” rebuilding of Afghanistan, based on the
principles of national sovereignty, independence
and non –interference. The rising interference of
superpowers such as USA and China in south Asia
too did not become an issue of concern for the lead-
ers of subcontinent. The leaders of SAARC though
felt that bilateral issues are creating hurdles in the
progress of the region and its 1.5 billion people but
no concrete step has been taken to overcome those
issues.
However, the summit remarked the need of dia-
logue and conversation among the members to re-
solve their differences. After all, it gives an open
forum to its members to exchange their views and
visions regarding south Asia’s present, future and
its potential role in international political and eco-
nomic structure.
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The South Asian Association
for Regional Cooperation
The South Asian Association for Regional Coop-
eration (SAARC) is an economic and political or-
ganization of eight countries in Southern Asia. In
terms of population, its sphere of influence is the
largest of any regional organization: almost 1.5 bil-
lion people, the combined population of its mem-
ber states. It was established on December 8, 1985
by Bangladesh, Bhutan, Maldives, Nepal, Pakistan,
India and Sri Lanka. In April 2007, at the
Association's 14th summit, Afghanistan became its
eighth member.
In the late 1970s, Bangladeshi President Ziaur
Rahman proposed the creation of a trade bloc con-
sisting of South Asian countries. The idea of re-
gional cooperation in South Asia was again mooted
in May 1980. The foreign secretaries of the seven
countries met for the first time in Colombo in April
1981. The Committee of the Whole, which met in
Colombo in August 1981, identified five broad ar-
eas for regional cooperation. New areas of coop-
eration were added in the following years.
The objectives of the Association as defined
in the Charter are:
Ø To promote the welfare of the people of South
Asia and to improve their quality of life;
Ø To accelerate economic growth, social progress
and cultural development in the region and to pro-
vide all individuals the opportunity to live in dig-
nity and to realize their full potential;
Ø To promote and strengthen collective self-
reliance among the countries of South Asia;
Ø To contribute to mutual trust, understanding
and appreciation of one another's problems;
Ø To promote active collaboration and mu-
tual assistance in the economic, social, cultural,
technical and scientific fields;
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Ø To strengthen cooperation with other devel-
oping countries;
Ø To strengthen cooperation among themselves
in international forums on matters of common in-
terest; and
Ø To cooperate with international and regional
organisations with similar aims and purposes.
The Declaration on South Asian Regional Coop-
eration was adopted by the Foreign Ministers in
1983 in New Delhi. During the meeting, the Min-
isters also launched the Integrated Programme of
Action (IPA) in nine agreed areas, namely, Agri-
culture; Rural Development; Telecommunications;
Meteorology; Health and Population Activities;
Transport; Postal Services; Science and Technol-
ogy; and Sports, Arts and Culture. The South Asian
Association for Regional Cooperation (SAARC) was
established when its Charter was formally adopted
on 8 December 1985 by the Heads of State or Gov-
ernment of Bangladesh, Bhutan, India, Maldives,
Nepal, Pakistan and Sri Lanka. ‘
Afghanistan was added to the regional grouping at
the behest of India on 13 November 2005, and be-
came a member on 3 April 2007. With the addi-
tion of Afghanistan, the total number of member
states were raised to eight (8). In April 2006, the
United States of America and South Korea made
formal requests to be granted observer status. The
European Union has also indicated interest in be-
ing given observer status, and made a formal re-
quest for the same to the SAARC Council of Min-
isters meeting in July 2006. On 2 August 2006 the
foreign ministers of the SAARC countries agreed
in principle to grant observer status to the US,
South Korea and the European Union. On 4 March
2007, Iran requested observer status. Followed
shortly by the entrance of Mauritius.
SAARC Secretariat
The SAARC Secretariat was established in
Kathmandu on 16 January 1987 and was inaugu-
rated by Late King Birendra Bir Bikram Shah of
Nepal.
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It is headed by a Secretary General appointed by
the Council of Ministers from Member Countries
in alphabetical order for a three-year term. He is
assisted by the Professional and the General Ser-
vices Staff, and also an appropriate number of func-
tional units called Divisions assigned to Directors
on deputation from Member States. The Secretariat
coordinates and monitors implementation of ac-
tivities, prepares for and services meetings, and
serves as a channel of communication between the
Association and its Member States as well as other
regional organizations.
The Memorandum of Understanding on the estab-
lishment of the Secretariat which was signed by
Foreign Ministers of member countries on 17 No-
vember 1986 at Bangalore, India contains various
clauses concerning the role, structure and admin-
istration of the SAARC Secretariat as well as the
powers of the Secretary-General.
In several recent meetings the heads of state or
government of member states of SAARC have
taken some important decisions and bold initia-
tives to strengthen the organisation and to widen
and deepen regional co-operation.
The SAARC Secretariat and Member States observe
8 December as the SAARC Charter Day1.
Free Trade Agreement
Over the years, the SAARC members have ex-
pressed their unwillingness on signing a free trade
agreement. Though India has several trade pacts
with Maldives, Nepal, Bhutan and Sri Lanka, simi-
lar trade agreements with Pakistan and Bangladesh
have been stalled due to political and economic
concerns on both sides. India has been construct-
ing a barrier across its borders with Bangladesh and
Pakistan. In 1993, SAARC countries signed an
agreement to gradually lower tariffs within the
region, in Dhaka. Eleven years later, at the 12th
SAARC Summit at Islamabad, SAARC countries
devised the South Asia Free Trade Agreement
which created a framework for the establishment
of a free trade area covering 1.4 billion people. This
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agreement went into force on January 1, 2006.
Under this agreement, SAARC members will bring
their duties down to 20 per cent by 2007.
SAARC Preferential Trading
The least developed nations in South Asia consist-
ing of Nepal, Bhutan, Bangladesh and Maldives
have an additional three years to reduce tariffs to
zero. India and Pakistan have signed but not rati-
fied the treaty.

Arrangement
The Agreement on SAARC Preferential Trading
Arrangement (SAPTA) was signed on 11 April 1993
and entered into force on 7 December 1995, with (IMP) Get UPSCPORTAL, IAS, Jobs,
the desire of the Member States of SAARC (India,
Pakistan, Nepal, Sri Lanka, Bangladesh, Bhutan and
Results, Notification ALERTS in Email.
the Maldives) to promote and sustain mutual trade
and economic cooperation within the SAARC re- Step-1: Click on link below and Fill Your Email address in
gion through the exchange of concessions. Online form. you will get a confirmation email within 10
The establishment of an Inter-Governmental min.
Group (IGG) to formulate an agreement to estab-
lish a SAPTA by 1997 was approved in the Sixth Step-2: Verify your email by clicking on the link in the email.
Summit of SAARC held in Colombo in December IMP: (check Inbox and Spam folders)
1991.
Step-3: Done! Now you will regular Alerts on your email.

South Asian Free

Trade Area
Click Below Link to get Free Newsletter:
http://upscportal.com/civilservices/newsletter
The Agreement on the South Asian Free Trade
Area is an agreement reached at the 12th SAARC
summit at Islamabad, capital of Pakistan on 6 Janu-
ary 2004. It creates a framework for the creation
of a free trade area covering 1.4 billion people in
India, Pakistan, Nepal, Sri Lanka, Bangladesh,
Bhutan and the Maldives.The seven foreign min-
isters of the region signed a framework agreement
on SAFTA with zero customs duty on the trade of
practically all products in the region by end 2016.
The new agreement i.e. SAFTA, came into being
on 1 January 2006 and will be operational follow-
ing the ratification of the agreement by the seven
governments.

SAFTA requires the developing countries in South

Asia, that is, India, Pakistan and Sri Lanka, to bring
their duties down to 20 percent in the first phase
of the two year period ending in 2007. In the final
five year phase ending 2012, the 20 percent duty
will be reduced to zero in a series of annual cuts.

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BRIC and IBSA
Summits
The two Summits
has discussed glo-
bal economic cri-
sis besides ways to
enhance coopera-
tion among the
member countries
of the two group-
ings. Prime Minister Manmohan Singh arrived in
Brazil on a two day visit inApril 2010 during which
he attended the Brazil—Russia—India—China
(BRIC) and India—Brazil— South Africa (IBSA)
Summits and held bilateral meetings with Chinese
President Hu Jintao and Russian President Dmitry
Medvedev. The Prime Minister reached from Wash-
ington on the second leg of his eight nation tour.
At the 2nd BRIC Summit, Iran’s nuclear issue and
the controversy surrounding it also discussed under
the grouping’s format by Singh, Russian President
Dmitry Medvedev, Chinese President Hu Jintao and
Brazilian President Lula da Silva. This was the first
time that Iran has been part of focussed agenda of
the grouping.
BRIC is a significant grouping comprising two of
the world’s leading energy producers Russia and
China and top energy consumers India and China,
which officials say forms the basis for natural syn-
ergy.
In the BRIC format, Foreign Ministers of the four
countries have met regularly on the sidelines of in-
ternational conferences, including the UN General
Assembly.
The BRIC countries, representing 40 per cent of the
global population, are among the largest and fastest
growing economies with rich human and material
resources. They represent the future of the global
economic landscape.
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With a similarity of views on several issues like
climate change and reform of global institutions,
including the UN, the four countries have been fine
tuning their collective approaches to these issues.
In the IBSA format too, India, Brazil and South Af-
rica, the three fastest growing economies of three
continents, have evolved common and coordinated
approaches to the challenges like global economic
crisis and climate change besides pushing efforts to
enhance cooperation among themselves.
After the IBSA Summit, India, Brazil and South Af-
rica signd two trilateral MoUs. These are in the ar-
eas of solar energy and science and technology. An
MoU in the field of sport is also likely to be inked.
“These groupings reflect the growing role of emerg-
ing economies in shaping the global economic or-
der,” the Prime Minister had said in a statement.
He said the IBSA process has come of age as it to-
day encompasses a wide range of activities which
supplement the excellent bilateral relations that In-
dia enjoys with each of these countries.
“Our coordination on important international issues
has expanded, and our trilateral cooperation is be-
ginning to bear fruit in many sectors,” the Prime
Minister had said.
“We have a high stake in the revival of the global
economy, an open trading system, energy security,
combating climate change and addressing non tra-
ditional threats to international security,” he said.
Singh also held bilateral meetings with the Chinese
President and Russian President. Ahead of his meet-
ing with Hu, Singh said in Washington that India
and China were working very hard to find a “practi-
cal” and “pragmatic” solution to the boundary ques-
tion and it would “take time” to get resolved.
Noting that both countries “recognise that it would
take time”, he said both the nations have agreed that
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pending the resolution of the border issues, peace
and tranquility should be maintained along the Line
of Actual Control and by and large that situation
prevails on the ground.
On the overall Sino India relations, he said the eco-
nomic content of the relationship has increased sig-
nificantly, with China today being India’s largest
trading partner.
There are large Chinese investments in our country
and there are large Indian investments in China. “On
the economic front the relationship is moving in the
right direction,” he said.
On multilateral issues, he said, there was a recogni-
tion in China that there was a similarity of approach
between the two countries and they can gain by
working together.
In this context, he referred to the Copenhagen con-
ference on climate change last December during
which India and China worked closely to block de-
veloped nations from imposing their agenda IBSA
to develop satellites, cooperate on global issues
India, Brazil and South Africa decided to jointly
develop two satellites and forged closer coopera-
tion on global issues like UN reforms, climate
change and world trade talks. This emerged after
the fourth India-Brazil-South Africa (IBSA) sum-
mit.
The two satellites will be used for studying climate
to help agriculture sector in the three countries.
Prime Minister Manmohan Singh said that IBSA
besides the embodiment of south-south cooperation
had entered the phase of consolidation and imple-
mentation of initiatives.
He said IBSA has immense prospects for the people
of the three countries and the right direction was
being provided to it by strengthening cooperation
in science and technology, energy, ocean’s research,
which were the hallmark of the forum.
“OBS has developed into a vibrant organisation
which will play important role in world affairs,”
Dr. Singh said.
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Dr. Singh said the three developing economies and
democracies shared similar views with regard to
reform of global institutions of governance like the
UN.
Mr. Zuma said that IBSA has a natural dialogue fo-
rum and he has great confidence in its future. He
said the decision to develop the satellite jointly was
symbolic of the fact that the forum has entered a
new phase.
He pointed out that the member countries had com-
mon positions on the Doha round of WTO talks.
He pressed for early conclusions of the Doha round
of trade talks saying it can’t be put indefinitely.
Mr. Zuma said the IBSA was rapidly emerging as
an important forum for engagement. “But we are
yet to fully explore the full potential of this forum,”
he said.
The South African president, whose country will
host the next IBSA summit, said there was an op-
portunity for expanding cooperation in science and
technology and reinforcing shared developmental
objectives.
Noting that all the three IBSA countries were influ-
ential in their own regions, Mr. Zuma said, “We
are in a position to make contributions to a global
debate. This became clear at the Copenhagen Sum-
mit on climate change when IBSA and China played
a key role in reaching an agreement.”
He said the four countries were able to reflect the
interest of developing nations at the climate meet.
He said the IBSA countries were key for reform of
global bodies like UN to make them more demo-
cratic and more responsive to the poor.
Mr. Zuma said the three countries needed more co-
ordination on climate change to ensure legally bind-
ing agreement on the issue in the next summit in
Mexico next year.
BRIC, IBSA nations not keen on Iran sanctions
As the United States and its western allies press ahead
,
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with efforts to impose tough penalties on Iran, lead-
ers and officials from two major international
groupings BRIC and IBSA meeting in Brasilia this
week took a contrary view, agreeing that new sanc-
tions would not help resolve the nuclear issue.
On the sidelines, India’s national security adviser,
Shiv Shankar Menon, took part in a meeting of BRIC
senior security officials alongside Nikolai Patrushev
of Russia and Dai Binguuo of China. Earlier in the
week, Mr. Menon also met with his U.S. counter-
part, James L. Jones, who provided a detailed de-
scription of Washington’s current approach to the
Iran issue.
Giving an account of the intra-BRIC exchanges on
Iran, a senior Indian official said, “All of us agreed
that we don’t think sanctions will help solve the
current problems with Iran.” In addition, there was
agreement that dialogue and diplomacy were essen-
tial and that the central role of the International
Atomic Energy Agency in settling the Iran nuclear
docket had to be re-established.
The official said the BRIC nations agreed Iran had
the right to nuclear energy but that it also has an
obligation to set at rest international fears about the
nature of its nuclear programme.
Though the BRIC summit statement did not touch
on Iran, the IBSA communiqué said the three lead-
ers “reiterated the need for a peaceful and diplomatic
solution of the issue”.
Indian officials said President Lula would be going
to Iran next month and that his visit had added sig-
nificance since Brazil was a non-permanent mem-
ber of the Security Council through 2011. Another
factor which might have a bearing on sanctions was
that Lebanon – whose government has tended not to
support the U.S. on Iran would assume the rotating
chair of the UNSC in May.
India buys a significant amount of crude oil from
Iran. Until 2009, Indian companies like Reliance also
sold refined products to Iran but have withdrawn
from the market as American pressure on banks
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around the world has made it more difficult to open
letters of credit.
An analysis
Summits of IBSA and BRIC nations, India and Bra-
zil were the lucky two who had overlapping mem-
bership in both forums. But South Africa, which is
only part of the former, would very much like BRIC
to become BRICS, while China, which is part of the
latter as well as of the climate change ginger group
of BASIC with India, Brazil and South Africa —
would not be averse to IBSA becoming CHIBSA.
Equation Reversed
Last year, when the Russian hosts at Ekaterinburg
held back-to-back summits of BRIC and the Shang-
hai Cooperation Organisation, the equation was re-
versed. Russia and China belong to both groupings,
while India, which has mere observer status in the
SCO, agreed to have Prime Minister Manmohan
Singh attend that summit only after receiving as-
surances that he would have full speaking rights and
would not have to leave the room when the real
members met.
On the sidelines of the April 15 IBSA and BRIC
meets in Brasilia, President Hu Jintao of China held
a bilateral meeting with his Brazilian counterpart,
Lula da Silva, and the two countries signed a num-
ber of agreements. One of these was an 'action plan',
and buried deep within it was this proposal: “The
two sides will discuss conducting long-term research
on the potential for furthering the development of
trade relations between IBSA and China”.
Not Enthusiastic
Some in Brazil have quietly been suggesting
Beijing's inclusion in IBSA -- China is, after all, its
largest trading partner -- but India and, to a lesser
extent, South Africa, which sees IBSA as a great ve-
hicle for itself on the world stage -- are not enthusi-
astic.
,
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“Well, IBSA has a character of its own -- three large
democracies coming together,” Prime Minister
Singh told reporters who managed to throw a ques-
tion to him on China joining the trilateral forum.
He was standing with his delegation in the lobby of
Itamaraty Palace, home to the Brazilian foreign
ministry, on Thursday evening, waiting for his mo-
torcade in between the IBSA and BRIC summits. “I
think IBSA has now come into its own”.
The reference to democracies was not accidental. It
was present in Dr. Singh's speech to the IBSA ple-
nary and the final summit communiqué spoke of
shared democratic traditions. For Indian officials,
this is what provides additional glue to a grouping
that joins India with the most important powers of
Africa and South America. It helps, of course, that
as a criterion for club membership, China would
not quallify.
Problematic
Asked about the expansion of BRIC, the Prime Min-
ister said this was an idea of Goldman Sachs. “We
are now trying to give it some shape, flesh it out.
Let us see”.
Like IBSA, the expansion of BRIC is problematic
because the majority of its members fear the dilu-
tion of the forum's core competence: fast rising
economies with a growing footprint in the global
economy and system. BRIC today accounts for a
little under a quarter of world output. The South
African economy is not yet in that league.
Other countries that have expressed an interest in
joining BRIC are Mexico, Indonesia and Turkey. The
Turks are also apparently interested in IBSA.
“What makes BRIC a good fit today is that the four
countries have complementary factor endowments
and national skills,” a senior Indian official told The
Hindu. If China has solid manufacturing and huge
financial clout, Russia has energy and advanced tech-
nology in certain fields, while Brazil is an agricul-
tural superpower with strong manufacturing and
India has a comparative advantage in IT, pharma-
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ceuticals as well as agriculture. In an article writ-
ten on the eve of the BRIC summit, President Dmitri
Medvedev spoke of the four countries collaborat-
ing with each other in nuclear technology, space
technology, aircraft manufacturing, nanotechnology
and other fields. But some in the Indian establish-
ment remain sceptical of doing too much with BRIC,
fearing a backlash from the U.S.
II BRIC SUMMIT: Joint
Statement
We, the leaders of the Federative Republic of Bra-
zil, the Russian Federation, the Republic of India
and the People’s Republic of China, met in Brasília
on 15 April 2010 to discuss major issues of the in-
ternational agenda as well as concrete steps to move
forward the cooperation and coordination within
BRIC.
We have agreed on the following:
Common Vision and Global
Governance
We share the perception that the world is undergo-
ing major and swift changes that highlight the need
for corresponding transformations in global gover-
nance in all relevant areas.
We underline our support for a multipolar, equi-
table and democratic world order, based on inter-
national law, equality, mutual respect, cooperation,
coordinated action and collective decision-making
of all States.
We stress the central role played by the G-20 in
combating the crisis through unprecedented levels
of coordinated action. We welcome the fact that the
G-20 was confirmed as the premier forum for in-
ternational economic coordination and cooperation
of all its member states. Compared to previous ar-
rangements, the G-20 is broader, more inclusive,
diverse, representative and effective. We call upon
all its member states to undertake further efforts to
,
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implement jointly the decisions adopted at the three
G-20 Summits.
We advocate the need for the G-20 to be proactive
and formulate a coherent strategy for the post-cri-
sis period. We stand ready to make a joint contri-
bution to this effort.
We express our strong commitment to multilateral
diplomacy with the United Nations playing the cen-
tral role in dealing with global challenges and
threats. In this respect, we reaffirm the need for a
comprehensive reform of the UN, with a view to
making it more effective, efficient and representa-
tive, so that it can deal with today’s global chal-
lenges more effectively. We reiterate the impor-
tance we attach to the status of India and Brazil in
international affairs, and understand and support
their aspirations to play a greater role in the United
Nations.
We believe the deepened and broadened dialogue
and cooperation of the BRIC countries is conducive
not only to serving common interests of emerging
market economies and developing countries, but
also to building a harmonious world of lasting peace
and common prosperity. We have agreed upon steps
to promote dialogue and cooperation among our
countries in an incremental, proactive, pragmatic,
open and transparent way.
International Economic and
Financial Issues
The world economic situation has improved since
our first meeting in June 2009, in Ekaterinburg. We
welcome the resumption of economic growth, in
which emerging market economies are playing a
very important role. However, we recognize that
the foundation of world economic recovery is not
yet solid, with uncertainties remaining. We call upon
all states to strengthen macroeconomic cooperation,
jointly secure world economic recovery and achieve
a strong, sustainable and balanced growth. We reit-
erate our determination to make positive efforts in
maintaining domestic economic recovery and pro-
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moting development in our own countries and
worldwide.
We underline the importance of maintaining rela-
tive stability of major reserve currencies and
sustainability of fiscal policies in order to achieve a
strong, long-term balanced economic growth.
We are convinced that emerging market economies
and developing countries have the potential to play
an even larger and active role as engines of economic
growth and prosperity, while at the same time com-
mit to work together with other countries towards
reducing imbalances in global economic develop-
ment and fostering social inclusion.
G-20 members, with a significant contribution from
BRIC countries, have greatly increased resources
available to the IMF. We support the increase of
capital, under the principle of fair burden-sharing,
of the International Bank for Reconstruction and
Development and of the International Finance Cor-
poration, in addition to more robust, flexible and
agile client-driven support for developing econo-
mies from multilateral development banks.
Despite promising positive signs, much remains to
be done. We believe that the world needs today a
reformed and more stable financial architecture that
will make the global economy less prone and more
resilient to future crises, and that there is a greater
need for a more stable, predictable and diversified
international monetary system.
We will strive to achieve an ambitious conclusion
to the ongoing and long overdue reforms of the
Bretton Woods institutions. The IMF and the World
Bank urgently need to address their legitimacy defi-
cits. Reforming these institutions’ governance struc-
tures requires first and foremost a substantial shift
in voting power in favor of emerging market econo-
mies and developing countries to bring their par-
ticipation in decision making in line with their rela-
tive weight in the world economy. We call for the
voting power reform of the World Bank to be ful-
filled in the upcoming Spring Meetings, and expect
the quota reform of the IMF to be concluded by the
,
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G-20 Summit in November this year. We do also note and strongly support Russia's bid for accession
agree on the need for an open and merit based selec- to the WTO.
tion method, irrespective of nationality, for the head- Development
ing positions of the IMF and the World Bank. More-
over, staff of these institutions needs to better re-
We reiterate the importance of the UN Millennium
flect the diversity of their membership. There is a
Declaration and the need to achieve the Millennium
special need to increase participation of developing
Development Goals (MDGs). We underscore the
countries. The international community must de-
importance of preventing a potential setback to the
liver a result worthy of the expectations we all share
efforts of poor countries aimed at achieving MDGs
for these institutions within the agreed timeframe
due to the effects of the economic and financial cri-
or run the risk of seeing them fade into obsolescence.
sis. We should also make sustained efforts to achieve
the MDGs by 2015, including through technical
In the interest of promoting international economic
cooperation and financial support to poor countries
stability, we have asked our Finance Ministers and
in implementation of development policies and so-
Central Bank Governors to look into regional mon-
cial protection for their populations. We expect the
etary arrangements and discuss modalities of coop-
UN MDG Summit, in September 2010, to promote
eration between our countries in this area. In order
the implementation of MDGs through policy rec-
to facilitate trade and investment, we will study
ommendations. We stress that sustainable develop-
feasibilities of monetary cooperation, including lo-
ment models and paths of developing countries
cal currency trade settlement arrangement between
should be fully respected and necessary policy space
our countries.
of developing countries should be guaranteed.
Recent events have shattered the belief about the self-
The poorest countries have been the hardest hit by
regulating nature of financial markets. Therefore,
the economic and financial crisis. The commitments
there is a pressing need to foster and strengthen co-
regarding the aid to the developing states, especially
operation regarding the regulation and supervision
those related to the MDGs, should be fulfilled, and
of all segments, institutions and instruments of fi-
there should be no reduction in development assis-
nancial markets. We remain committed to improve
tance. An inclusive process of growth for the world
our own national regulations, to push for the reform
economy is not only a matter of solidarity but also
of the international financial regulatory system and
an issue of strategic importance for global political
to work closely with international standard setting
and economic stability.
bodies, including the Financial Stability Board.

International Trade Agriculture

We express our satisfaction with the Meeting of
We stress the importance of the multilateral trad-
Ministers of Agriculture and Agrarian Development
ing system, embodied in the World Trade Organi-
in Moscow, where they discussed ways of promot-
zation, for providing an open, stable, equitable and
ing quadripartite cooperation, with particular atten-
non discriminatory environment for international
tion to family farming. We are convinced that this
trade. In this connection, we commit ourselves and
will contribute towards global food production and
urge all states to resist all forms of trade protec-
food security. We welcome their decision to create
tionism and fight disguised restrictions on trade. We
an agricultural information base system of the BRIC
concur in the need for a comprehensive and balanced
countries, to develop a strategy for ensuring access
outcome of the Doha Round of multilateral trade
to food for vulnerable population, to reduce the
talks, in a manner that fulfills its mandate as a "de-
negative impact of climate change on food security,
velopment round", based on the progress already
and to enhance agriculture technology cooperation
made, including with regard to modalities. We take
and innovation.
,
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Fight against poverty
We call upon the international community to make
all the necessary efforts to fight poverty, social ex-
clusion and inequality bearing in mind the special
needs of developing countries, especially LDCs,
small islands and African Countries. We support
technical and financial cooperation as means to con-
tribute to the achievement of sustainable social de-
velopment, with social protection, full employment,
and decent work policies and programmes, giving
special attention to the most vulnerable groups, such
as the poor, women, youth, migrants and persons
with disabilities.
Energy
We recognize that energy is an essential resource
for improving the standard of living of our peoples
and that access to energy is of paramount impor-
tance to economic growth with equity and social
inclusion. We will aim to develop cleaner, more
affordable and sustainable energy systems, to pro-
mote access to energy and energy efficient technolo-
gies and practices in all sectors. We will aim to di-
versify our energy mix by increasing, where appro-
priate, the contribution of renewable energy sources,
and will encourage the cleaner, more efficient use
of fossil fuels and other fuels. In this regard, we re-
iterate our support to the international cooperation
in the field of energy efficiency.
We recognize the potential of new, emerging, and
environmentally friendly technologies for diversi-
fying energy mix and the creation of jobs. In this
regard we will encourage, as appropriate, the sus-
tainable development, production and use of
biofuels. In accordance with national priorities, we
will work together to facilitate the use of renew-
able energy, through international cooperation and
the sharing of experiences on renewable energy, in-
cluding biofuels technologies and policies.
We believe that BRIC member countries can coop-
erate in training, R&D, Consultancy services and
technology transfer, in the energy sector.
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Climate Change
We acknowledge that climate change is a serious
threat which requires strengthened global action.
We commit ourselves to promote the 16th Confer-
ence of the Parties to the United Nations Frame-
work Convention on Climate Change and the 6th
Conference of the Parties serving as the Meeting of
the Parties to the Kyoto Protocol, in Mexico, to
achieve a comprehensive, balanced and binding re-
sult to strengthen the implementation of the Con-
vention and the Protocol. We believe that the Con-
vention and the Protocol provide the framework for
international negotiations on climate change. The
negotiations in Mexico should be more inclusive,
transparent, and should result in outcomes that are
fair and effective in addressing the challenge of cli-
mate change, while reflecting the principles of the
Convention, especially the principle of equity and
common but differentiated responsibilities.
Terrorism
We condemn terrorist acts in all forms and mani-
festations. We note that the fight against interna-
tional terrorism must be undertaken with due re-
spect to the UN Charter, existing international con-
ventions and protocols, the UN General Assembly
and Security Council resolutions relating to inter-
national terrorism, and that the prevention of ter-
rorist acts is as important as the repression of ter-
rorism and its financing. In this context, we urge
early conclusion of negotiations in the UN General
Assembly of the Comprehensive Convention on In-
ternational Terrorism and its adoption by all Mem-
ber States. Brazil and China express their sympathy
and solidarity with the people and Governments of
Russia and India which suffered from recent bar-
baric terrorist attacks. Terrorism cannot be justi-
fied by any reason.
Alliance of Civilizations
We affirm the importance of encouraging the dia-
logue among civilizations, cultures, religions and
peoples. In this respect, we support the “Alliance of
,
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Civilizations”, a United Nations’ initiative aimed
at building bridges, mutual knowledge and under-
standing around the world. We praise the Brazilian
decision to host, in Rio de Janeiro, in May 2010, the
3rd Global Forum and confirm our intention to be
present at the event, in appropriate high level.
Haiti
We reaffirm our solidarity towards the Haitian
people, who have been struggling under dire cir-
cumstances since the earthquake of January 12th, and
reiterate our commitment to gather efforts with the
international community in order to help rebuild-
ing the country, under the guidance of the Haitian
government, and according to the priorities estab-
lished by the Action Plan for National Recovery and
Development of Haiti.
Cooperation
We welcome the following sectoral initia-
tives aimed at strengthening cooperation
among our countries:
a) the first Meeting of Ministers of Agriculture
and Agrarian Development;
b) the Meetings of Ministers of Finance and Gov-
ernors of Central Banks;
c) the Meetings of High Representatives for Secu-
rity Issues;
d) the I Exchange Program for Magistrates and
Judges, of BRIC countries, held in March 2010 in
Brazil following the signature in 2009 of the Proto-
col of Intent among the BRIC countries’ Supreme
Courts;
e) the first Meeting of Development Banks;
f) the first Meeting of the Heads of the National
Statistical Institutions;
g) the Conference of Competition Authorities;
h) the first Meeting of Cooperatives;
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i) the first Business Forum;
j) the Conference of think tanks.
28. We also endorse other important mani-
festations of our desire to deepen our rela-
tionship, such as:
a) the joint publication by our respective national
statistical institutions which is going to be released
today;
b) a feasibility study for developing a joint BRIC
encyclopedia.
29. We reaffirm our commitment to advance
cooperation among BRIC countries in science,
culture and sports.
We express our confidence in the success of the 2010
World Expo in Shanghai, the 2010 Commonwealth
Games in New Delhi, the 2013 World Student
Games in Kazan, the 2014 Winter Olympic and
Paralympic Games in Sochi, the FIFA 2014 World
Cup in Brazil and the 2016 Olympic and Paralympic
Games in Rio de Janeiro.
We reaffirm the efforts to strengthen our coopera-
tion and assistance for reduction of natural disas-
ters. Russia and India express their condolences and
solidarity with the people and Governments of Bra-
zil and China, for the lives lost in the mudslide in
Rio de Janeiro, Brazil, and in the earthquake in
Yushu, China.
III BRIC Summit
Brazil, Russia and India appreciated the offer of
China to host the III BRIC Summit in 2011.
Russia, India and China expressed their profound
gratitude to the Government and people of Brazil
for hosting the II BRIC Summit.
,
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Caste Census
Cabinet clears caste census in 2011
A
'er several delibera6ons
within the government on
the poli6cally-sensi6ve
issue, the Union cabinet decided
to carry out a separate house-to-
house caste enumera6on from
June to September next year
Giving in to demands from al-
most all poli6cal par6es, govern-
ment on Sep 9 2010. decided to
hold caste census next year
under an exercise to be carried
out separately from the enumer-
a6on of popula6on.
A'er several delibera6ons within
the government on the poli6-
cally-sensi6ve issue, the Union
cabinet decided to carry out a
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By : Avadhesh Kumar Pandey
separate house-to-house caste
enumera6on from June to Sep-
tember next year.
According to home minister P.
Chidambaram, a'er considering
various op6ons, the op6on that
we have approved is, based on
the responses of various poli6cal
par6es, that caste must be can-
vassed and the integrity of the
headcount must not be affected.
The caste enumera6on will be
conducted in a phased manner
a'er the popula6on enumera-
6on, which will include biometric
capture and headcount, is com-
pleted by March next year, he
said. He evaded a reply when
asked whether caste enumera-
6on would be merged with the
headcount.
The decision has been taken
a'er considering op6ons sug-
gested by the Group of Ministers
(GoM) set up on the issue and
the consulta6ons that finance
minister Pranab Mukherjee held
with leaders of various par6es.
Par6es like Rashtriya Janata
Dal, Samajwadi Party and Janata
Dal (United) had disrupted pro-
ceedings in Parliament for several
days during the Budget and Mon-
soon sessions while pressing for
caste census.
The Bhara6ya Janata Party,
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which was divided ini6ally, later
decided to support it. The issue
even divided the Congress as well
as the Union cabinet with some
favouring caste census and others
opposing it, promp6ng the gov-
ernment to set up a GoM to con-
sider all aspects related to such a
move.
Chidambaram said a suitable
legal regime for collec6on of data
on castes would be formulated in
consulta6on with the ministry of
law and jus6ce.
There will be an addi6onal
cost for the exercise which will be
assessed at a separate mee6ng.
The office of the Registrar Gen-
eral and Census Commissioner
would conduct the field opera-
6ons of the caste enumera6on.
The Central government will
cons6tute an expert group to
classify the caste/tribe returns
a'er the enumera6on is com-
pleted. The office of the Registrar
General and Census Commis-
sioner would hand over the de-
tails of the castes/tribes returned
in the enumera6on to the pro-
posed expert group.
The last caste-wise census
was held in 1931 and such a prac-
6ce had been given up as a mat-
ter of policy a'er Independence.
In response to the demands
for enumera6ng castes other
than Scheduled Castes and
Scheduled Tribes in the Census
2011 raised inside Parliament as
well as by various groups outside,
the ministry of home affairs sub-
mi7ed a note to the Union cabi-
net in May 2010 pertaining to this
issue.
India launches Census
2011, the biggest-ever in
history
India on Apr 01, 2010 launched
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“Census 2011,'' the biggest-ever ship of mobile phones, comput-
census a7empted in the history ers, internet, having treated or
of mankind enumera6ng the untreated drinking water facility
country's 1.2 billion popula6on and usage of banking services.
and classifying usual residents ac- They will also seek addi6onal in-
cording to their gender, religion, forma6on for the crea6on of
occupa6on and educa6on. NPR. The government has al-
The massive exercise, to be ready said that no informa6on
spread over next 11 months, will will be collected on castes as no
mark a milestone as the first-ever caste-based census has ever been
Na6onal Popula6on Register conducted in independent India.
(NPR) will also be prepared in The second phase, called the
which all persons aged over 15 Popula6on Enumera6on phase,
years will be photographed and will be conducted simultaneously
fingerprinted to create a biomet- all over the country from Febru-
ric na6onal database. With this ary 9 to 28, 2011, and the en6re
India will probably become the exercise would be completed by
first democra6c na6on in the March 5, 2011.
world which would have got its All 640 districts, 5,767 tehsils,
popula6on fingerprinted in a year 7,742 towns and more than six
from now. lakh villages will be covered.
As the first ci6zen of the
country, President Pra6bha De-
visingh Pa6l was the first person What is Census
to be listed in the decennial exer-
cise. She appealed to her compa- The Indian Census is the most
triots to follow her example “for credible source of informa6on on
the good of the na6on.'' Demography (Popula6on charac-
The 15th Na6onal Census ex- teris6cs), Economic Ac6vity, Liter-
ercise, since 1872, will see over acy & Educa6on, Housing &
25 lakh officials
capturing the
socio-economic-
cultural profile of
its ci6zens. It will
cost around Rs.
2,209 crore while
the expenditure on
NPR will be Rs.
3,539.24 crore.
The exercise will
also consume
more than 11 mil-
lion tonnes of
paper.
During the
massive exercise,
the enumerators
for the first 6me
will collect infor-
ma6on like owner-
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Household Ameni6es, Urbaniza-
6on, Fer6lity and Mortality,
Scheduled Castes and Scheduled
Tribes, Language, Religion, Migra-
6on, Disability and many other
socio-cultural and demographic
data since 1872. Census 2011 will
be the 15th Na6onal Census of
the country. This is the only
source of primary data at village,
town and ward level. It provides
valuable informa6on for planning
and formula6on of polices for
Central & State Governments and
is widely used by Na6onal & In-
terna6onal agencies, scholars,
business people, industrialists,
and many more. The delimita-
6on/reserva6on of Cons6tuen-
cies
Parliamentary/Assembly/Pan-
chayats and other Local Bodies is
also done on the basis of the de-
mographic data thrown up by the
Census. Census is the basis for re-
viewing the country's progress in
the past decade, monitoring the
on-going schemes of the Govern-
ment and most importantly, plan
for the future. That is why the slo-
gan of Census 2011 is "Our Cen-
sus, Our Future".
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Na$onal Popula$on
Register
The NPR would be a Register of
usual residents of the country.
The NPR will be a comprehensive
iden6ty database that would help
in be7er targe6ng of the benefits
and services under the Govern-
ment schemes/programmes, im-
prove planning and help
strengthen security of the coun-
try. This is being done for the first
6me in the country.
How will both these exercises be
conducted?
The Census is a statutory exercise
- conducted under the provisions
of the Census Act 1948 and Rules
made there under. The NPR is
being created under the provi-
sions of the Ci6zenship Act and
Rules.
Census Process
The Census process involves vis-
i6ng each and every household
and gathering par6culars by ask-
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ing ques6ons and filling up Cen-
sus Forms. The informa6on col-
lected about individuals is kept
absolutely confiden6al. In fact
this informa6on is not accessible
even to Courts of law. A'er the
field work is over the forms are
transported to data processing
centres located at 15 ci6es across
the country. The data processing
will be done using sophis6cated
so'ware called Intelligent Char-
acter Recogni6on So'ware (ICR).
This technology was pioneered
by India in Census 2001 has be-
come the benchmark for Cen-
suses all around the globe. This
involves the scanning of the Cen-
sus Forms at high speed and ex-
trac6ng the data automa6cally
using computer so'ware. This
revolu6onary technology has en-
abled the processing of the volu-
minous data in a very short 6me
and saving a huge amount of
manual labour and cost.
NPR Process
Details such as Name, Date of
Birth, Sex, Present Address, Per-
manent Address, Names of Fa-
ther, Mother and Spouse etc will
be gathered by visi6ng each and
every household. All usual resi-
dents will be eligible to be in-
cluded irrespec6ve of their
Na6onality. Each and every
household will be given an Ac-
knowledgement Slip at the 6me
of enumera6on. The data will
then be entered into computers
in the local language of the State
as well as in English. Once this
database has been created, bio-
metrics such as photograph, 10
fingerprints and probably Iris in-
forma6on will be added for all
persons aged 15 years and above.
This will be done by arranging
. . Vol. - 19
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camps at every village and at the
ward level in every town. Each
household will be required to
bring the Acknowledgement Slip
to such camps. Those who miss
these camps will be given the op-
portunity to present themselves
at permanent NPR Centres to be
set up at the Tehsil/Town level. In
the next step, data will be printed
out and displayed at prominent
places within the village and ward
for the public to see. Objec6ons
will be sought and registered at
this stage. Each of these objec-
6ons will then be enquired into
by the local Revenue Department
Officer and a proper disposal
given in wri6ng.
Persons aggrieved by such
order have a right of appeal to
the Tehsildar and then to the Dis-
trict Collector. Once this process
is over, the lists will be placed in
the Gram Sabha in villages and
the Ward Commi7ee in towns.
Claims and Objec6ons will be re-
ceived at this stage also and dealt
with in the same manner de-
scribed above. The Gram
Sabha/Ward Commi7ee has to
give its clearance or objec6on
within a fixed period of 6me a'er
which it will be deemed that the
lists have been cleared. The lists
thus authen6cated will then be
sent to the Unique Iden6ty Au-
thority of India (UIDAI) for de-du-
plica6on and issue of UID
Numbers. All duplicates will be
eliminated at this stage based on
comparison of biometrics.
Unique ID numbers will also be
generated for every person. The
cleaned database along with the
UID Number will then be sent
back to the Office of the Registrar
General and Census Commis-
sioner, India (ORG&CCI) and
would form the Na6onal Popula-
6on Register. As the UID system
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works on the basis of biometric
de-duplica6on, in the case of per-
sons of age 15 years and above
(for whom biometrics is avail-
able), the UID Number will be
available for each individual. For
those below the age of 15 years
(for whom biometrics is not avail-
able), the UID Number will be
linked to the parent or guardian.
Will Caste Census in
India Change Anything?
The recent approval by the Gov-
ernment of India for caste based
census has aroused concerns
among poli6cal par6es as well as
social scien6sts and ethnogra-
phers. For the self-proclaimed
‘modernists’ such regressive
measures are likely to heighten
caste consciousness among Indi-
ans. While the pragma6sts argue
that data on caste can help the
government to be7er target affir-
ma6ve ac6on policies and
thereby address caste differences
ra6onally. The fact however is the
that caste as a social reality in
India draws succour from mul6-
ple sources which will remain un-
touched by either the proposed
census or the resultant official
policies. Caste issues influence
everyday life of Indians in count-
less ways.
For those who think that
caste in India is merely a tool of
poli6cal opportunism or a rem-
nant of ancient Hindu culture,
visit to the rural regions of North
Kerala during the winter months
can be surprising and unnerving.
Every year as the winter sets in,
rural areas of North Kerala pre-
pare for a unique transforma6on
of social rela6ons. Theyyam is an
art form where performers, be-
longing to lower castes, are be-
Featured Article
lieved to be incarnated by local
dei6es and members of higher
castes flock to seek their blessing.
For three months of the year indi-
viduals from the lower castes are
elevated to the status of God but
have to live as untouchables once
the Theyyam season culminates.
Numerous rituals and cus-
toms like Theyyam con6nue to
nourish the prac6ce of caste dif-
ferences in India. One only needs
to skim through the matrimonial
columns in leading English dailies
to get a sense that caste is an im-
portant considera6on even for
the ‘modern’ elite segment of the
urban Indian popula6on.
Stephen P. Rosen in his book
Socie6es and Military Power:
India and its Army discuss the
con6nuing salience of caste in
India’s army. Though many would
consider Rosen’s conclusions
somewhat extreme but he does
raise several valid concerns. The
ba7alions in the Indian Army con-
6nue to be organised as the Jat,
Sikh, Dogra or Rajput regiments.
The Poona Pact between Ma-
hatma Gandhi and B.R. Ambed-
kar in 1932 gran6ng reserva6on
for ‘depressed’ classes in the
provincial legislatures was a pre-
cursor for the phenomenal poli6-
cal salience of caste in Indian
poli6cs. From the Backward
Classes Commission’s endeavour
to create a master list of other
backwards classes in 1955 to
KHAM (Kshatriyas, Harijans, Adi-
vasis and Muslims) poli6cs of the
Congress (I) in the 1980s; from
the Mandal Commission uproar
in the 1990s to growing mass ap-
peal of Dalit based poli6cal par-
6es like the Bahujan Samaj Party,
India’s poli6cal arena has wit-
nessed countless caste inspired
s6rrings. No observer of Indian
poli6cs can ignore the role of
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caste in determining electoral
outcomes.
Moreover, even before the
on-going controversy over the
2010 caste census erupted, the
Government of India had been in-
volved in many projects catego-
rizing its popula6on along caste
lines. Despite cri6cisms from his-
torians, poli6cal scien6sts and an-
thropologists the Government of
India did not abandon the colo-
nial state’s prac6se of differen6-
a6ng people along lines of caste
and religion in the People of India
projects. According to Susan
Bayly, in the late 1990s the An-
thropological Survey of India was
undertaking “massive exercise in
caste-based data collec6on- the
People of India Project- with
funding from Planning Commis-
sion. The project has used DNA
sampling to iden6fy difference
between individual castes and
tribes. Readers are told that as
composite ‘type’, the Schduled
Castes have ‘rela6vely broad
noses’; chamars says another
entry are characterized by a ‘long,
narrow head shape and a long
moderately broad nasal shape.”
Such, outrageous dis6nc6ons
based on caste in a report spon-
sored by a State agency had gone
completely unno6ced by the
‘modernists’ and pragma6cs in-
volved in recent debate. Though
previous censuses have not in-
cluded ques6ons of caste directly,
the ethnographic notes in the
census reports have contributed
much to literature on caste in
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India.
According to the pragma-
6sts India cannot simply
assume ‘modernity’ by ig-
noring caste. They see
caste as a form of social
stra6fica6on much like
class in Britain or race in
the U.S. The U.S. census
and job applica6ons have a vol-
untary disclosure segment requir-
ing informa6on about the
individual’s race. Comparing
caste with class and race appears
incorrect if one realises that un-
like other forms of social stra6fi-
ca6ons, caste in India is allegedly
sanc6oned by the sacred scrip-
tures. Even though the scriptural
sanc6ty of caste is open to de-
bate many Indians cite the
Manusmri6 and Bhagavad Gita to
support arguments in favour of
caste. It is much simpler to ad-
dress differen6a6ons based on
skin colour or na6onality than
stra6fica6ons perceived to be or-
dained by religious texts.
Caste based social prac6ces
in India go beyond the more visi-
ble poli6cal and economic dimen-
sions and these subtle aspects
are unlikely to be impacted by
the enumera6on of caste through
the census.
Brief History of Census
The earliest literature 'Rig-Veda'
reveals that some kind of popula-
6on count was maintained in dur-
ing 800-600 BC in India. The
celebrated 'Arthashastr' by 'Kau-
6lya' wri7en in the 3rd Century
BC prescribed the collec6on of
popula6on sta6s6cs as a measure
of state policy for taxa6on. It con-
tained a detailed descrip6on of
methods of conduc6ng popula-
6on, economic and agricultural
censuses. During the regime of
the Mughal king Akbar, the ad-
ministra6ve report 'Ain-e-Akbari'
included comprehensive data
pertaining to popula6on, indus-
try, wealth and many other char-
acteris6cs.
A systema6c and modern
popula6on census, in its present
form was conducted non syn-
chronously between 1865 and
1872 in different parts of the
country. This effort culmina6ng in
1872 has been popularly labeled
as the first popula6on census of
India However, the first synchro-
nous census in India was held in
1881. Since then, censuses have
been undertaken uninterruptedly
once every ten year.
The Census of India 2001 was
the fourteenth census in the con-
6nuous series as reckoned
from1872 and the sixth since in-
dependence. The gigan6c task of
census taking was completed in
two phases. In the first phase,
known as House -lis6ng Opera-
6ons, all building and structures,
residen6al, partly residen6al or
non- residen6al were iden6fied
and listed and the uses to which
they were put recorded. Informa-
6on on houses, household
ameni6es and assets were also
collected. In the second phase,
known as Popula6on Enumera-
6on, more detailed informa6on
on each individual residing in the
country, Indian na6onal or other-
wise, during the enumera6on pe-
riod was collected.
At the Census 2001, more
than 2 million (or 20 lakh) enu-
merators were deployed to col-
lect the informa6on by visi6ng
every household. The Indian Cen-
sus is one of the largest adminis-
tra6ve exercises undertaken in
the world.
. . Vol. - 19
Commonwealth
Games
2010
Delhi 2010 set to
become largest
Commonwealth
Games in history

O
rganising Commi;ee Com-
monwealth Games 2010
Delhi announced that
around 7000 athletes and team
officials from 71 na:ons and ter-
ritories will make next month’s
Games the biggest in the history
of the Commonwealth Games.
India will field the biggest con:n-
gent of more than 600 athletes
and team officials while Bostwana
will be the smallest with less than
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• By Dr. Divya
five athletes and officials. from Africa.
Many na:ons are sending their India’s neighbours Pakistan and
largest con:n- Sri Lanka will send
gents to a Com- THESE INCLUDE con:ngents of around
m o n w e a l t h • Australia (550) 125 each. Australia,
Games outside • England (525) Canada, England, New
their home na- • Canada (400) Zealand, Scotland and
:ons. • New Zealand (325) Wales will keep their
With a 220- • Malaysia (325) record as the only na-
strong con:ngent, • Scotland (300) :ons to par:cipate in
South Africa will • Wales (240) all edi:ons of the
be biggest team Commonwealth
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Article

Games when they compete in

Delhi 2010. Table showing par'cipa'on in recent Games
The exact number of athletes
Year Venue Disciplines No. of athletes & officials
will be known only when the Del-
ega:on Registra:on Mee:ngs 1978 Edmonton 10 1978
(DRM) are held between Septem-
ber 16 and October 2, 2010. Un:l 1982 Brisbane 10 2154
this process is complete, the Or- 1986 Edinburgh 10 2123
ganising Commi;ee is not al-
lowed by the Commonwealth 1990 Auckland 14 2826
Games Federa:on to reveal the 1994 Victoria 10 3671
names of the individual athletes.
1998 Kuala Lumpur 15 5065

Delhi 2010 Sports 2002 Manchester 17 3679*

2006 Melbourne 16 5766
XIX Commonwealth Games 2010
Delhi will feature following 17 Complex).
sport: Renova:on of the following
• Aqua:cs Competition Venues exis:ng venues will be completed
• Archery on schedule: Athle:cs (Jawahar-
• Athle:cs Construc:on of the following lal Nehru Stadium); Boxing (Talka-
• Badminton new venues is underway in full tora Indoor Stadium); Gymnas:cs
• Boxing swing and progressing sa:sfacto- (Indira Gandhi Stadium); Hockey
• Cycling rily: Badminton and Squash (Siri (Major Dhyan Chand Na:onal
• Gymnas:cs Fort Sports Complex); Netball Stadium); Swimming (Dr S.P.
• Hockey (Thyagaraj Sports Complex); Mukherjee Aqua:cs Complex);
• Lawn Bowls Rugby 7s (Delhi University); Table and Tennis (R.K. Khanna Tennis
• Netball Tennis (Yamuna Sports Complex); Stadium).
• Rugby Sevens Weightli'ing and Wrestling (In-
• Shoo:ng dira Gandhi Sports Complex); These are the following venues:
• Squash Shoo:ng (Dr Karni Singh Shoo:ng 1. Jawaharlal Nehru Sports
• Table Tennis Range);Archery Preliminaries (Ya- Complex
• Tennis muna Sports Complex); and Lawn 2. Thyagaraj Sports Complex
• Weightli'ing Bowls (Jawaharlal Nehru Sports 3. Indira Gandhi Sports Complex

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4. Dr. S.P. Mukherjee Swimming
Stadium
5. Talkatora Indoor Stadium
6. Major Dhyan Chand Na:onal
Stadium
7. Siri Fort Sports Complex
8. Dr. Karni Singh Shoo:ng
Range
9. R.K. Khanna Tennis Complex
10. Yamuna Sports Complex
11. Delhi University
About Delhi 2010
The Organising Commi;ee Com-
monwealth Games 2010 Delhi
(OC CWG Delhi 2010) came into
being on 10 February 2005, as a
registered society under the Soci-
e:es Registra:on Act 1860. It was
resolved by the Commonwealth
Games Federa:on (CGF) in the
General Assembly held in Jamaica
on 13 November 2003 to entrust
the organising and hos:ng of the
XIX Commonwealth Games to the
Indian Olympic Associa:on (IOA).
As per Clause 2(C) of the Host
City Contract, signed by the Gov-
ernment of India(GOI), the Gov-
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ernment of Na:onal Capital Ter-
ritory of Delhi (GNCTD), IOA, and
CGF, the CGF has delegated the
organisa:on of the Games to the
OC CWG Delhi 2010.
The OC CWG Delhi 2010 has
set itself the goal of conduc:ng
the best Commonwealth Games
to date, including the provision of
impeccable standards of service
to athletes, officials and the gen-
eral public, in close collabora:on
with its partners. It hopes to set
new benchmarks for other Host
na:ons with regards to urban
sustainable development by
showcasing excellent infrastruc-
ture and facili:es which could be
used by the society and the gen-
eral public for genera:ons to
come.
The Games 'look'
The logo of the XIX Common-
wealth Games 2010 Delhi is in-
spired by the Chakra, the na:onal
symbol of freedom, unity and
power. Spiralling upwards, it de-
picts the growth of India into a
proud, vibrant na:on. Her billion
people coming together to fulfil
their true des:nies. India`s jour-
ney from tradi:on to modernity,
her economic transforma:on into
a super power… reaching out to
the world and leading the way,
even as she enthusias:cally em-
braces all the 71 CGA na:ons and
territories of the Commonwealth
to become one and host the best
ever Commonwealth Games in
Delhi.
Come Out and Play
The logo tagline is in an invita:on
to every person across all divides
– Indian and Commonwealth - to
let go of themselves and par:ci-
pate in the Games to the best of
their abili:es, in the true sprit of
the Games. It is an exhorta:on to
them to set new records, to out-
perform, and to raise the bar by
scaling new peaks of achieve-
ment. It is also a call to the peo-
ple of India, especially Delhi, to
come out in support of the
Games and play the perfect hosts
at the XIX Commonwealth Games
2010 Delhi.
Colour Pale(e : The colour
pale;e for the Delhi 2010 look
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Article

programme combines two of the hearted gentleman’ who loves mul:na:onal, mul:-sport event
dis:nc:ve colours of the Delhi making friends and enthusing which features compe::ons in-
2010 Emblem with the official people to ‘come out and play’. volving thousands of elite ath-
colours of the Commonwealth In Indian mythology, letes from members of
Games. the :ger is associated the Commonwealth
Green : The colour that signifies with Goddess of Na:ons. Organ-
life, energy and high spirits also Durga, the em- ised every four
represents the fact that Delhi bodiment of years, they are
2010 will be the firstever Green Shak: (or fe- the third-
Games. With a spring in your male power) largest
step, face every challenge and and the van- mul:-sport
overcome hurdles with radiance quisher of event in
and gusto. evil. She the world,
Purple : Combining the stable rides her a'er the
and calming aspects of blue with powerful Summer
the mys:cal quali:es of pink, this vehicle – Olympic
colour sa:sfies the need for reas- the :ger – Games and
surance, while adding a hint of into combat, the Asian
mystery and excitement. especially in Games.
Red, Yellow & Blue : Common- her epic and As well
wealth Games colours, represent- victorious ba;le as many
ing the ‘Trinity of Values’ that against Mahisha- Olympic sports,
symbolise the games; unifying sur, a dreaded the Games also in-
Humanity (Red) giving all athletes demon. clude some sports
a chance to realise their Des:ny Shera embodies values that are played mainly in
(Yellow) and promo:ng Equality that the na:on is proud of: Commonwealth countries, such
(Blue). majesty, power, charisma, intelli- as lawn bowls, rugby sevens and
Pink : This colour has also been gence and grace. His athle:c netball. The Games are overseen
introduced to the pale;e adding prowess, courage and speed on by the Commonwealth Games
an element of surprise and luxury the field are legendary. He is also Federa:on (CGF), which also con-
to the Games look programme. It a reminder of the fragile environ- trols the spor:ng programme
plays to the crowd and truly re- ment he lives in and our respon- and selects the host ci:es. The
flects India in all its resplendent sibility towards the protec:on of host city is selected from across
glory. his ecosystem. the Commonwealth, with eight-
een ci:es in seven countries hav-
ing hosted it.
Shera - The Mascot Commonwealth Games The event was first held in 1930
under the :tle of the Bri:sh Em-
Shera, mascot of the XIX Com- The Commonwealth Games is a pire Games in Hamilton, Ontario,
monwealth Games 2010 Delhi, is
the most visible face of the XIX
Commonwealth Games 2010
Delhi. His name comes from the
Hindi word Sher – meaning :ger.
Shera truly represents the mod-
ern Indian. He is an achiever with
a posi:ve a<tude, a global ci:-
zen but jus:fiably proud of his na-
:on’s ancient heritage, a fierce
compe:tor but with integrity and
honesty. Shera is also a ‘large-

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Canada. The event was renamed
as the Bri:sh Empire and Com-
monwealth Games in 1954, the
Bri:sh Commonwealth Games in
1970, and gained its current :tle
in 1978. Only six teams have at-
tended every Commonwealth
Games: Australia, Canada, Eng-
land, New Zealand, Scotland and
Wales. Australia has been the
highest achieving team for ten
games, England for seven and
Canada for one.
There are currently 54 mem-
bers of the Commonwealth of
Na:ons, and 71 teams par:cipate
in the Games. The four Home Na-
:ons of the United Kingdom –
England, Scotland, Wales and
Northern Ireland – send separate
teams to the Commonwealth
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Games, and individual teams are in 2006 in Melbourne, Australia.
also sent from the Bri:sh Crown The next edi:on will be held in
dependencies of Guernsey, Jer- 2010 in Delhi, India.
sey and the Isle of Man (unlike at
the Olympic Games, where the
combined "Great Britain" team History
represents all four home na:ons
and the Crown dependencies). A spor:ng compe::on bringing
Many of the Bri:sh overseas ter- together the members of the
ritories also send their own Bri:sh Empire was first proposed
teams. The Australian external by the Reverend Astley Cooper in
territory of Norfolk Island also 1891 when he wrote an ar:cle in
sends its own team, as do the The Times sugges:ng a "Pan-Bri-
Cook Islands and Niue, two states tannic-Pan-Anglican Contest and
in free associa:on with New Fes:val every four years as a
Zealand. It has been reported means of increasing the goodwill
and good under-
standing of the
Bri:sh Empire".
In 1911,
the Fes:val of
the Empire was
held in come
London to cele-
brate the coro-
na:on of King
George V. As
part of the fes:-
val an Inter-Em-
pire Champi✍
onships was
held in which
teams from Aus-
tralia, Canada,
South Africa and
the United King-
dom competed
in events such
as boxing,
wrestling, swim-
ming and athlet-
ics.
In 1928,
Melville Marks
Robinson of
Canada was
that Tokelau, another depend- asked to organise the first ever
ency of New Zealand will be Bri:sh Empire Games. These
sending a team to the 2010 were held in Hamilton, Canada
Games in Delhi, India. two years later.
The most recent games were The first Games were held in
Vol. - 18
Downloaded From: http://www.upscportal.com
1930 in Hamilton, Ontario,
Canada. The name changed to
Bri:sh Empire and Common-
wealth Games in 1954, to Bri:sh
Commonwealth Games in 1970
and assumed the current name
of the Commonwealth Games in
1978.
At the 1930 games, women
competed in the swimming
events only. From 1934, women
also competed in some athle:cs
events.
The Empire Games flag was
donated in 1931 by the Bri:sh
Empire Games Associa:on of
Canada. The year and loca:on of
subsequent games were added
un:l the 1950 games. The name
of the event was changed to the
Bri:sh Empire and Common-
wealth Games and the flag was
re:red as a result.
Tradi:ons
• From 1930 un:l 1950, the pa-
rade of na:ons was led by a
single flagbearer carrying the
Union Flag.
• Since 1958, there has been a
relay of athletes carrying a
baton from Buckingham
Palace to the Opening Cere-
mony. This baton has within
it the Queen's message of
gree:ng to the athletes. The
baton's final bearer is usually
a famous spor:ng per-
sonage of the host na-
:on.
• All other na:ons march
in English alphabe:cal
order, except that the
first na:on marching in
the Parade of Athletes
is the host na:on of
the previous games,
and the host na:on of
the current games
marches last. In 2006
countries marched in
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alphabe:cal order in geo-
graphical regions.
• Three na:onal flags fly from
the stadium on the poles that
are used for medal cere-
monies: Previous host na:on,
Current host na:on, Next
host na:on.
• The military is more ac:ve in
the Opening Ceremony than
in the Olympic Games. This is
to honour the Bri:sh Military
tradi:ons of the Old Empire
Editions
The first edi:on of the event was
the 1930 Bri:sh Empire Games
and eleven na:ons took part. The
quadrennial schedule of the
games was interrupted by World
War II and the 1942 Games (set
to be held in Montreal, Canada)
were abandoned.
The games were con:nued in
1950 and underwent a name
change four years later with the
first Bri:sh Empire and Common-
wealth Games in 1954. Over 1000
athletes par:cipated in the 1958
Games as over thirty teams took
part for the first :me. The event
was briefly known as the Bri:sh
Commonwealth Games for the
1970 and 1974 edi:ons and the
1978 Games, held in Edmonton,
Article
Canada, were the first to be held
under the :tle of the "Common-
wealth Games". The Edmonton
event marked a new high as al-
most 1500 athletes from 46
countries took part.
Par:cipa:on at the 1986 Games
was affected by a boyco; by
some African and Caribbean na-
:ons in protest to the par:cipa-
:on of New Zealand, following
the All Blacks Rugby tour of
Apartheid era South Africa in
1985, but the Games rebounded
and con:nued to grow therea'er.
The 1998 Commonwealth Games
in Kuala Lumpur, Malaysia saw
the spor:ng programme grow
from 10 to 15 sports as team
sports were allowed for the first
:me. Par:cipa:on also reached
new levels as over 3500 athletes
represented 70 teams at the
event. At the most recent Games
(in Melbourne, Australia in 2006),
over 4000 athletes took part in
spor:ng compe::ons. The three
na:ons to have hosted the games
the most number of :mes are
Australia (4), Canada (4), and
New Zealand (3). Furthermore,
five edi:ons have taken place in
the countries within the United
Kingdom. Two ci:es have held
the games on mul:ple occasions:
Auckland (1950 and 1990), and
Edinburgh (1970 and 1986).
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 UPSCPORTAL Current Affairs : http://upscportal.com/civilservices/current-affairs
CORRUPTION IN INDIA ROOTED DEEPLY
One would say the
corruption in India
has an ancient
linkage,and it is
deeply rooted in our
tradition. The author
of the Arthasastra
made some remarks
on government officials of his time which are relevant
even today: “Just as it is impossible not to taste the
honey or the poison that finds itself at the tip of the
tongue, so it is impossible for a government servant
not to eat up at least a bit of the king’s revenue. These
in the post-war world became only bolder while eating
up government money and accepting bribes. A corrupt
person is termed immoral, dishonest and unscrupulous
in his dealings. His disregard for honesty,
righteousness and truth results in his alienation from
society. He is treated with contempt. But as erosion
of values leads to decadence, remedies for the social
malaise remain elusive, and so no amount of contempt
can eradicate corruption which is a symptom of
decadence.
When we ask a question to ourselves that why India
is still not a developed nation even after 60 years of
independence? Why there is not enough development
when India is having immense potential and talent at
par with any developed nation have? The answer is
very simple. The main culprit behind this situation is
widespread corruption in every field. To get an
admission in a college…to get a legal paper from a
Government office…to get an approval for the
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construction of a house…to get an electricity
connection…to do an urgent surgery for life
saving……. Thus not even nook and corner of the
daily life is spared from this evil. Now, people so
adapted and well familiar with the situation and ready
to give bribe without any hesitation and accepted as
a part of the system. They also will demand bribe
when they are sitting in a decisive position. This is
the epicenter of this deadly evil which spread over
the entire system from executive to class IV level. The
only motive to become a people’s representative, a
civil servant or even an attender is how to get the
undeserved money.
The more dangourous fact…bribes and corruption got
reputation in society. If there is an official who dosent
accepts bribe…he will be isolated even in public and
will have an image of usless person. In today’s India
these officials representing all government
departments are very close to the most corrupt
businessmen who are too unscrupulous to let any
opportunity of amassing profits slip. This collusion
broadens the base of the vicious circle and corruption
spreads ‘like wild fire to engulf the entire society. The
political and social guardians depend only too much
on the richer communities and they look indulgently
on while these communities hold the entire society
and the government to ransom.Corruption starts at the
top and percolates down to the whole society. Such
corruption cannot be confined to the towns alone. It
is as widespread in the villages where the dishonest
officials and the traders carry the germs of the disease.
Economic need and exposure to western luxuries are
3
UPSCPORTAL Current Affairs : http://upscportal.com/civilservices/current-affairs
tempting factors in society for the youth. They try to
find means and ways to make money, however
deceptive or defective these methods may be. It is
meaningless to blame the system, it is the defect of
people who handle the same.A number of reasons like
lack of stringent legislation, slow and delayed judicial
systems, poverty, illiteracy, lack of faith in “Dharma”
or righteousness, greedy mind and a tendency to be
smart are responsible behind corruption. It is not
prevalent in India only but Corruption is today a
world-wide phenomenon.
It is shameful that the officials meant for administering
public welfare themselves provide enough scope to
the offenders to commit the offence and go scot-free,
for equal compensation that they get from the
offenders. Here, if the statute provides severe
punishment (more than the one provided to the
offender) to the erring official, perhaps, corruption
could be minimised. Society itself has had a drastic
change in its behaviour today, to what it was earlier.
The need to be morally upright is irrelevant, under
the speed of its activity.
REMEDIES
Corruption can not be abolished overnigh, first,
political parties should take the responsibility and
highly principled & determined personalities have to
lead the executive. With persistent efforts, the mindset
of the public has to change. Cant say how much time
it will take… this evil spread over and established by
taking 50 years…any way let us transfer the hope and
luck to next generation. There are many legal as well
as illegal means and methods with which one can
come out unscathed after committing any offence. It
requires only a management skill to convince the right
forums. Therefore, if society has to be cleansed from
being immorality and illegal doings, just legislation,
however stringent will not help. The resistance to
commit offences should be developed from one’s
conscience or heart and it can never be created fully
by legislation. Hence, inculcating moral values in
people right from infancy could provide the remedy
over a period of time. If the economic levels of the
4 WWW.UPSCPORTAL.COM
society could be improved, so that luxuries become
basics and the value for them also become affordable,
corruption would be unnecessary.
Democratic spirit can flourish only in an environment
of openness and trust. Every citizen should know what
the administrators, working under the overall control
of people’s representatives, are doing. Since
administration in a democracy serves the public
interest, there is no need or justification for hiding
the decision making process from the public scrutiny
Transparency in public administration will bring about
a fundamental change in the attitude of people. Tenets
of transparency will require the civil servants to
publicly display the names of beneficiaries of a
development scheme along with selection criteria and
the procedure for making the selection. The
requirement for public disclosure will ensure that civil
servants take correct and defensible decisions. They
will, henceforth treat all the citizens as their masters
and they will have to keep them in good humour if
they have to retain their jobs and privileges.
Government agencies are financed by taxes and levies
imposed on citizens. They are, therefore, answerable
and accountable to the public for their acts of omission
and commission. Freedom of Information Act will put
premium on probity and integrity in the functioning
of the civil servants. Since all their activities subserve
the public interest they have nothing to hide.They will
readily supply all the information about government
policies and decisions to the people whenever
approached by them. People will then give them
respect and recognition that they rightly deserve. It is
only the dishonest and the devious that would be hard
pressed to hide their partisan decisions.
In a modern welfare and development administration,
the government provides a large number of services
to the citizens. If these services are indifferently or
inefficiently performed, people can rightfully protest
and complain. They can insist on optimum utilization
of the taxes and service charges paid by them to
finance the civic services like water supply, power
supply, sanitation and public health care. Dereliction
of duty by public servants will be immediately
 UPSCPORTAL Current Affairs : http://upscportal.com/civilservices/current-affairs
detected and publicized and criticized by the public.
It will put a tremendous pressure on the civil servants
to perform or lose their face or even their jobs.The
advancement of Information technology is very much
conducive to the successful implementation of the
Right to Information if enacted by the government
now. The storage, retrieval and dissemination of vast
amount of information have been greatly facilitated
by the successive improvement in computers. Since
the enforcement of Right to Information requires an
enabling Freedom of Information Act, the existing
government can always formulate the provisions of
the Act in such a way as to leave for the government
CURRENT AFFAIRS
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sufficient leeway to conceal many decisions or
decision making processes from public scrutiny. The
Freedom of Information Bill, which has been
presented to the Parliament, has a very long list of
exceptional situations wherein it is not incumbent
upon the government agencies to part with
information. It is, however, expected that once the
people get used to obtain information contained in the
government files, their appetite for information will
be whetted and they will ask for more information.
Lokpal can be another milestone towards abolishing
corruption from india.
5
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UPSCPORTAL Current Affairs : http://upscportal.com/civilservices/current-affairs
CORRUPTION
MONEY MATTERS IN SPORTS
Sport is a big phenomenon of today, it
is very important part of today life.
However, sport is rather contradictory
phenomenon. It is connected with big
humanistic values and it formats life
and values of billions of people on the
one side. It is also connected with
dirty business, doping, corruption and
violence on the other side. Corruption
in sport should be matter of concern
not of pessimism. We are not speaking
about decline of sport values. But we
are facing of a new challenge. This
challenge is higher as the issue is still
not dealt with properly. We may
perhaps compare doping in sport with
corruption in sport. However, doping
has been seriously treated for many
years now, with number of experts,
scientific background and international
co-ordination structures. Nothing of it
exists in the area of corruption in sport
yet.
Just over a decade after cricket was
hit by one its biggest scandals, three
Pakistani cricketers were given prison
sentences last week by a London
court on charges of spot-fixing. For
the first time in cricket’s history,
players face jail terms of between six
and 30 months, besides the prospect
of never again playing the game. This
is in stark contrast to investigations into
match-fixing in 2000 where the central
THE MOST
Money Matters the Most
figure was the former South African
captain, Hansie Cronje. Cricketers
from various countries were alleged
to have been involved, including a
former captain of the Indian team who
is now a member of the Indian
Parliament. Enquiry commissions
were set up in South Africa and
Pakistan following the scandal, but
most players got away with bans,
fines or in some cases just a
reprimand. After the events of 2000,
cricket’s governing body, the
International Cricket Council, set up
the Anti-Corruption and Security Unit
to tackle the menace of match fixing.
But ironically it was a sting operation
by the now discredited and defunct
News of the World in 2010 which
exposed the spot-fixing by the
Pakistani cricketers and provided
evidence for sentencing.
While cricket with its elaborate rules
is particularly prone to spot-fixing -
where you bet on individual events
within the game rather than the result
itself - the phenomenon of fixing is
hardly confined to cricket. We are at
a time when the world of sport seems
to be awash in corruption. Earlier this
year, prosecutors in South Korea
indicted an astonishing 46 football
players on charges of fixing matches
in the football K-League. According to
the South Korean prosecutors, the
players received up to US$50,000 for
fixing matches, and sometimes even
bet on the outcome. In Turkey, the
champion club Fenerbahce is at the
centre of a match-fixing scandal,
having won 16 of its 17 league
matches at the end of the season to
clinch the title on goal difference. It’s
not just sportspersons who are in the
dock. Sports administrators all over
the world are facing scrutiny. FIFA,
football’s governing body and the
richest sports association in the world,
is in the midst of its biggest scandal.
FIFA’s 24-member executive
committee, which has had Sepp
Blatter at the helm of affairs for 13
long years, is among the most sought
after clubs. But this elite club has now
been riven apart with influential
committee members accused of
paying bribes.
The head of the Caribbean and North
and Central American region has
already resigned. And Qatar ’s
Mohamed bin Hammam, who was
head of Asia’s football federation, has
been banned for life by FIFA’s ethics
committee. Bin Hammam is not going
down without a fight. He has not only
challenged FIFA’a ban but also
promised to reveal wrongdoings by
Blatter. This has put a question mark
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UPSCPORTAL Current Affairs : http://upscportal.com/civilservices/current-affairs
over the bidding process for the 2018
and 2022 World Cups which were
awarded to Russia and Qatar
respectively. What many had long
suspected about the cronyism and
corruption within FIFA is now coming
to light. The obvious reason why there
are so many corruption scandals
involving both players and
administrators is the incredible amount
of money involved in sport. FIFA’s
current annual revenue is now pegged
at US$1.3 billion and it even gets tax
breaks from Switzerland where it is
headquartered. There is plenty of
money too in other sports like cricket
which enjoys much less global
popularity, but is akin to a religion in
South Asia. In 2010-11, the Board of
Control for Cricket in India generated
over US$400 million in revenues. With
this kind of money it is not surprising
that corruption has eaten into sport.
While sports administrators in many
parts of the world have never had a
great reputation, it is the corruption of
players that is more worrying. Many
individual sporting disciplines have
been tainted by performance
enhancing drugs, but that is something
the administrators have tried to check
by putting in place an elaborate
regime of doping tests.
Transparency International has
produced this collection of articles,
links and information resources to cast
a light on the vulnerabilities of the
sport world to corruption as well as
efforts being undertaken to combat it.
We speak with investigative
journalists. We look at the mysterious
lack of convictions in sports
corruption. We examine a book that
details the history of FIFA (Fédération
Internationale de Football
Association). And we talk about the
role of civil society organisations in
keeping the beautiful game beautiful.
If sport was a largely informal affair
a century ago, it has morphed into a
full-fledged industry – total costs,
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including infrastructure, of the 2006
World Cup in Germany are estimated
at upwards of € 6 billion (see
interview with sport journalist Jens
Weinreich). With such increasingly
huge sums in play, whether in terms
merchandising, sponsorship, betting or
athlete salaries, the seduction of and
vulnerability to corrupt behaviour has
grown. The sport world has
responded slowly and, to date,
inadequately. It is as serious a threat
as doping; only it has the potential to
inflict much greater damage on the
sport world and the communities,
representing billions of people globally,
that support it.
Football scandals in Germany, Brazil,
Italy, Belgium and China are evidence
that the problem is real and it is global.
This means that international sports
associations such as FIFA and the
International Olympic Committee
(IOC) must lead the way in terms of
systematic enforcement of a zero-
tolerance policy on corruption. FIFA is
currently trumpeting the introduction
of an Ethics Commission as well as
the creation of a commercial firm
called Early Warning System designed
to detect irregularities in game
scoring. These are laudable efforts,
but the phenomenon runs deeper than
match-fixing. There is a need to
address the conflicts of interest that
are part and parcel of a familial
network of athletic officials that spans
the globe. While statements have
been made and ethical codes adopted,
what is missing is rigorous
enforcement and follow-through,
including the systematic ejection of
tainted officials.
For preventing and eliminating
corruption it is important to know the
scope of corruption and areas where
it occurs. Knowing this it is also
important to know patterns under
which corruption is predominantly
performed. This simple request is not
easy to fulfill. When corruption is
regarded it is very difficult
everywhere, in all sectors of society,
to get reliable figures. Especially to get
police and judicial statistic, which is
successfully used in many other areas
of crime and social pathology, do not
bring required information. Detected
or reported corruption is always only
an iceberg of the whole problem and
not always indicates correctly areas
where corruption is most wide spread
.A comprehensive study of this issue
would be most desirable. But even for
the short study like this one a survey
of international press and Internet
provides interesting mapping of the
problem. It appears that corruption can
be found in almost any imaginable
areas of sport. The main areas are
match fixing, embezzlement or
misusing of sport funds, corruption in
hosting of games, corruption in
changing sport results, corruption in
transfers of players, corrupted
elections in sporting bodies. We can
also mention situations where high
sport officials were convicted of
corruption in their non-sport activities
which is not corruption in sport itself
but it certainly influences the sport life.
We also keep aside a role of politics
in sport which might be very close to
political corruption of sport. It
represents another very interesting and
controversial issue of sport closely
related to the issue of corruption in
sport.
Match Fixing
Match fixing is a quite common
problem in number of sports like
football, tennis, basketball, volleyball
etc. The reasons for match fixing may
be also numerous. Perhaps the most
commonly match fixing is connected
with betting, legal or illegal. In this
cases match fixing is connected with
financial profit and it may be
connected with organized groups or
we can even directly speak about
UPSCPORTAL Current Affairs : http://upscportal.com/civilservices/current-affairs
links to organized crime. Match fixing
may also occur in direct links with
“sport” life. Matches can be fixed in
order to gain better position in sport
competition. It often occurs in cases
where a club is in a risk of falling to
lower league. While the visible purpose
is of a purely “sport nature” the
underlining causes are often again
financial – remaining in a higher
league can generate higher income for
the club and its owners (TV rights,
better value for players). Devastating
impact to sport is the same.
However, match-fixing is something
that requires not just administrators
but investigative agencies to be on
their toes. Prison terms for the guilty
cricketers, one of them still a teenager,
is not a happy occurrence. But it’s
heartening that the Pakistani people
have by and large welcomed the court
judgment and said the players
deserved it. Indeed, we can only hope
that such punishment will deter
sportspersons in future from giving in
to the temptation of making quick
money through dubious means. Fixing
of any sort destroys the purity of sport
and the sacrosanct relationship
between a spectator and the sports
hero. Once that trust is destroyed, it
does irreparable damage to the
enterprise of sport. That’s why the jail
terms for the cricketers, however
distasteful, were needed.
Managing of International Sport
Federations
International sport federations with
their often-enormous wealth and
limited external control are of an
especially high risk of corruption.
Corruption here can take different
form from simple misuse or
embezzlement of federation funds
though corruption related to media
rights up to corruption of federation
members. To make picture more
structured we take the later two
options as separate one. Following
case of Ruben Acosta, former
president of Volleyball Federation
represents a very good example of
difficulties regarding possible
corruption in sport. Media rights and
other marketing activities represents
one of major income source of sport,
namely of a top international sport.
Large sum of money attract the fraud
and corruption and organised crime.
Large amount of money also always
attracted organized criminal groups. At
the 12 Anti-corruption conference in
November 2006, on workshop “The
Business of Sports and Corruption”
Henri Roemer, of UEFA, presented
part of the findings of a report that he
had made to UEFA and which is
expected to lead to some reforms of
the organization in the next few
months: “There are no ‘sport mafias’
but mafias invest into sports. With the
huge potential for financial returns and
the generally rather low standards of
professionalism in the administration
of clubs, football attracts criminal
activities such as the trafficking of
young players, money laundering,
illegal betting etc. The risks for
criminals are minimal and control
systems are weak. Players are
normally young and easy to influence,
while by bribing one key player, the
outcome of a game can be bought
and generate revenues from betting.
National laws and systems often have
little chances to be effective in relation
to the international dimension of illegal
activities in sports. There is also a
legal vacuum: even the EU itself
counts only half as many members as
UEFA. Because player trafficking,
money laundering and corruption are
bloodless crimes, they tend to be
rather accepted socially. One can also
see that these problems started to
affect amateur sports too. But the
risks are great and the loss of interest
by fans can already be witnessed in
empty Italian stadia.”
Doping is another grave area of
concerns. There have been many
successful partnerships between anti-
doping and Governments worldwide,
collaborating together to bring fair
honest sport to all that deserve it.
Anti-doping operations including the
Balco case, the Italian police
investigations at the 2007 Turin
Olympics and operation Puerto were
all conducted with close partnerships
between the police and anti-doping
agencies. Drug testing, research and
education is overseen by the World
Anti-Doping Agency (WADA) and the
WADA Code forms the ‘bible’ of anti-
doping, seen by many as one of the
most significant developments in anti-
doping to date. Many now believe that
the other ‘evil’ of sport is that of
corruption, yet there is no anti-
corruption body solely for sport.
Corruption is growing and at an
alarming rate. Betting scandals are
taking up more headline space in
sports such as snooker, tennis and
soccer. Where there is money there
will be crime and corruption.
Unfortunately there is no test for
corruption, although WADA have
close ties with Interpol and the World
Customs Organisation to help combat
such evils. Sport is big business, with
millions being gambled on events each
day, we are faced with many
challenges. It is important that the
anti-doping community unite against
such spoils and that all athletes respect
ethical, honest sport.
Outcomes of above mentioned
discussion must reach wide sport
audience. They must therefore be
transferred into ethical guidelines and
training manuals. Ethical and integrity
aspect including risk of corruption and
corruption prevention principles should
become a part of sport education and
training. While many manifestation of
corruption in sport may be ambiguous
there are many acts of corruption in
sport which can be prosecuted under
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existing international legislations. As
Council of Europe and United Nations
conventions provide rather sufficient
framework for corruption investigation
and prosecution it is highly
recommended to adhere to these
convention for countries which had not
done so yet. Transparency is one of
the most powerful tools against
corruption. Any measure which will
make sport life, including sport
financing, more transparent should be
supported and promoted. National
subsidies provided by government to
sport can be use a tool for requesting
increased transparency. Having in
mind limited possibilities of
governments to intervene to internal
sport life also other measures should
be explored. For instance big sponsors
and marketing partners might be
encouraged to play an important role
in promoting transparency in sport. To
avoid risk that they will be perceived
negatively together with corrupted
sport in the case of corruption
scandals they may man connect their
support to the sport organization with
demands on bigger transparency. The
power of money can be in this way
put to the service of a good purpose.

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COUP IN PAKISTAN : QUITE A POSSIBILITY

POSSIBL ITY

Amid near-open conflict between
Pakistan's civilian and military
leadership, the Pentagon has neither
sought nor received assurances that
the Pakistani army won't stage a
coup, a Pentagon spokesman said
Wednesday."This is a matter for Pakistani
officials -- their government leaders,
military and civilian -- to work out," the
spokesman, Navy Capt. John Kirby, told
reporters. It also is a matter of grave
concern in light of Pakistan's status as
a nuclear power and the risk that its
arsenal -- said to be well protected now
-- could fall into the wrong hands in
the event of civil conflict. The Pentagon
disclosed that Army Gen. Martin
Dempsey, chairman of the Joint Chiefs
of Staff, talked by phone on Tuesday
with his Pakistani counterpart, Army
Gen. Ashfaq Pervez Kayani. Dempsey's
office declined to provide details of the
conversation but said it was their first
contact since Dec. 21. Dempsey has
an unusually close connection with
Kayani. He has known the Pakistani
general since 1988, when both attended
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the U.S. Army's Command and General
Staff College at Fort Leavenworth, Kan.
Pakistan's prime minister fired the
defense secretary yesterday in a dispute
over a memo sent to Washington that
enraged the army. The army has warned
darkly of "grievous consequences"
as a result of the standoff. Relations
between President Asif Ali Zardari
and the generals have never been good
but have soured dramatically in recent
months. The unsigned memo sent to
Washington asked for its help in reining
in the military in exchange for favorable
security policies. It was masterminded
by Pakistan's envoy to Washington,
who has denied the accusation but
resigned in a failed attempt to stem
fallout from the crisis. Pakistan's
new ambassador to Washington,
Sherry Rehman, met yesterday at the
State Department with Secretary of
State Hillary Rodham Clinton. State
Department spokeswoman Victoria
Nuland called the meeting a chance to
talk about "getting our relationship back
on track in all of its elements in the new
year." Asked about Pakistan's political
instability, Nuland said U.S. diplomats
in Islamabad were monitoring the
situation but insisted that these were
internal matters for Pakistan to solve
on its own.
Since coming to power in 2008, the
ruling Pakistan People’s Party (PPP) has
enjoyed a relatively good relationship
with the country’s powerful Army.
Analysts say the Army had been content
to rehabilitate its image after nine years
of unpopular direct military-rule under
General Pervez Musharraf, winning key
victories against the Taliban in Pakistan’s
restive northwest and Tribal Areas.
That changed when a US businessman,
Mansoor Ijaz, brought to a light a secret
memo sent by unknown persons to the
US government, requesting help in
curtailing the Army in exchange for
a set of pro-US policies. The secret
memo, which was allegedly drafted in
the aftermath of the Osama bin Laden
raid in 2011 because the government
feared a coup, created a major scandal
in the country known as ‘Memo-gate’
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 UPSCPORTAL Current Affairs : http://upscportal.com/civilservices/current-affairs
that cost former Pakistani Ambassador
to the US Husain Haqqani his job, and
ratcheted tensions and drove a stake
between the civilian government and the
military. President Zardari has denied
any involvement with the memo.
Though the Army has ruled Pakistan
directly for half of the country’s 64 year
history, analysts say it’s increasingly
unlikely that the Army will forcibly
oust the civilian government this time,
because it just wouldn’t be popular
with the media, Supreme Court, or
the general public. If the government
is to be dismissed before elections,
it’s more likely to come “legally” via
a Supreme Court ruling. Right now,
Pakistan is closely watching two high
profile cases just for that reason. The
Supreme Court is investigating the
Memo-gate scandal, pitting the Army
and civilian government against each
other in court. On Jan. 16, the Supreme
Court charged Prime Minister Yusuf
Raza Gilani with contempt for failing to
re-open corruption cases dating back
to the 1990s against President Asif Ali
Zardari. If Mr. Gilani is found guilty, his
jailing and dismissal from office could
create a power vacuum that could be
used to help the Army install a pro-
military interim government. Adding
further interest, Mansoor Ijaz is due
to appear before the court on Jan. 25,
and has promised to unleash what he
describes as damning revelations – that
could send Pakistan’s hyperactive media
into overdrive and further damage the
government’s fragile reputation.
The government says he does, but
the Supreme Court ruled in 2009 that
the National Reconciliation Ordinance,
a political amnesty signed by former
leader Pervez Musharraf and the late
Benazir Bhutto, Zardari’s husband, is
not valid – casting a legal shadow on
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Zardari’s presidency and uncertainty
on what would happen to him if the
court rules he’s guilty of past crimes.
Prime Minister Gilani, on the other
hand, does not enjoy immunity, and if
he is found guilty of contempt of court
for not reopening corruption cases
against Zardari, faces dismissal, jail
time, and a bar from public office. On
Monday, Mr. Gilani, who finds himself
at the center of the clash between
the institutions, received a welcome
boost when parliament passed a pro-
democracy resolution calling for the
military and Supreme Court to remain
within their constitutional limits.Still,
the government’s position is precarious
and many expect snap elections before
the government’s five-year tenure is up
in February 2013. While on the other
hand military coup seems quite distinct
in Pakistan in the present scenario,
as the army desired democracy and
stability in the country. After the Memo
Gate scandal broke out, there were
speculations that a military coup will
take place in the country. Earlier, the
Pakistan military had rubbished reports
of a coup amid the recent tension over
the Memo Gate scandal. The alleged
confrontation between the military and
the government became more apparent
following the military taking on Prime
Minister Yousuf Raza Gilani over the
sacking of the Defence Secretary, and
the appointment of a new commander
of the 111 Brigade. However, the
military brass expressed surprise and
concern over the repeated reports of
a possible military coup and decided
to hold briefings from the platforms
of parliamentary committees of the
National Assembly, the Senate and
special panels, which deal with national
security and defence-related matters,
to address the misgivings of the elected
leadership. Earlier, the US had also
rejected such speculations, with many
analysts saying that a military coup in
Pakistan was 'unlikely' at this point in
time.
A head-on collision between an
elected civilian government in Pakistan
and the Pakistan Army is usually
expected to culminate with the Army
chief of the day announcing a takeover by
the military on national television with
the words: “Merey aziz humwatanon
…” In the history of Pakistan's troubled
civilian-military relations, the military
has always wielded the upper hand, the
bigger stick. But the rapidly heating
stand-off between the Pakistan People's
Party government and the Pakistan
Army, which threatened to boil over on
Wednesday as a war of words erupted
between Prime Minister Yusuf Raza
Gilani and the military, may yet escape
the traditional ending. Prime Minister
Gilani's remarks to the Chinese People's
Daily , that the responses of the Army
Chief and the ISI head to the Supreme
Court on the infamous memo affair
were “illegal” and “unconstitutional,”
were extraordinary. The sub-text of the
Prime Minister's remarks was that the
government could sack both General
Ashfaq Parvez Kayani and Lt. Gen Shuja
Pasha — both officers are serving on
extension, and the ISI chief's extended
term is ending in March 2012 — for
their conduct. This reinforced the view
that he was upping the ante against the
Army, almost daring it to take on the
government. The military's response,
that the Prime Minister's words had
“serious ramifications with potentially
grievous consequences” carried an all-
too-familiar and ominous ring. Mr.
Gilani's decision to immediately hit
back by sacking the Defence Secretary,
Naeem Khlaid Lodhi, a retired general
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who is seen as close to the Army chief,
and his replacement with a career civil
servant, also served to heighten the
coup fears. Reinforcing these fears, a
new commander took charge of the
infamous 111 Brigade stationed in
Rawalpindi, also known as the coup-
making brigade because its soldiers
have been used to occupy important
buildings and installations during a
military takeover.
Still there is hope that this stand-off
may not end in the seemingly inevitable.
That Prime Minister Gilani made his
provocative comments to a Chinese
newspaper itself was unusual. More
unusual was the timing — as noted by
the military in its statement, General
Kayani was at that precise time on an
official tour of China. It seemed almost
as if the Prime Minister was trying to
draw Pakistan's biggest ally into the
government's battle for survival. The
Army has also learnt that in the long
run, coups usually do not work to its
advantage. The example of General
Pervez Musharraf and his downward
spiral is fresh in its institutional
memory. The job of running a country,
one as difficult as Pakistan, especially at
the moment, means getting elbow-deep
into the muck, most of which sticks on
the uniform, and hurts the military's
long-term interest of retaining its pre-
eminent national position.
There is no popular appetite
for military rule, even going by the
commentary in Pakistan's traditionally
pro-military media. The explosion of
the media — traditional and new media,
social networks such as Facebook and
Twitter — also means that it is difficult
for the Army to control the narrative
to justify coups. On Wednesday,
“Pakistan Prime Minister” was trending
on Twitter, and was by itself a cause of
much pride amongst Pakistani tweeters.
The Court's confrontation has added
the pressure on the PPP government.
Some Pakistani analysts are of the view
that Prime Minister Gilani's aggressive
stand with the military, practically
provoking it to carry out a coup, may
be a ploy to “go down as shaheed ”,
martyred by the military — the PPP
takes pride in its troubled history with
the Pakistan Army — instead of being
hauled into court to answer corruption
charges.But the stand-off cannot
continue indefinitely, and it is clear that
one or more actors will have to quit the
stage in order to end the uncertainty,
or at least this phase of it. Pakistani
analysts are not ruling out that it could
be Generals Kayani and Pasha. A more
likely scenario is that the Army, though
reluctant to carry out an outright coup,
might not be as averse to effecting a
change of government, which means
the present dispensation gets replaced
with another political formation, or
perhaps a fresh election is called a year
before it is due in 2013.

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The United Nations Climate
Change Conference in Durban, South
Africa, was held from 28 November
- 11 December 2011. The conference
involved a series of events, including the
seventeenth session of the Conference
of the Parties (COP 17) to the UN
Framework Convention on Climate
Change (UNFCCC) and the seventh
meeting of the Conference of the
Parties serving as the Meeting of Parties
to the Kyoto Protocol (CMP 7). In
support of these two main bodies, four
other bodies convened: the resumed
14th session of the Ad hoc Working
Group on Long-term Cooperative
Action under the Convention (AWG-
LCA); the resumed 16th session of the
Ad hoc Working Group on Further
Commitments for Annex I Parties
under the Kyoto Protocol (AWG-KP);
and the 35th sessions of the Subsidiary
Body for Implementation (SBI) and
the Subsidiary Body for Scientific and
Technological Advice (SBSTA).
The Conference drew over
12,480 participants, including
over 5400 government officials,
5800 representatives of UN bodies
and agencies, intergovernmental
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organizations and civil society
organizations, and more than 1200
members of the media. The meetings
resulted in the adoption of 19 COP
decisions and 17 CMP decisions and the
approval of a number of conclusions by
the subsidiary bodies. These outcomes
cover a wide range of topics, notably the
establishment of a second commitment
period under the Kyoto Protocol, a
decision on long-term cooperative
action under the Convention, the launch
of a new process towards an agreed
outcome with legal force applicable to
all parties to the Convention, and the
operationalization of the Green Climate
Fund.
The negotiations were driven by a
series of interdependent linkages—some
constructed to drive the negotiations
forward, some integral to the field of
climate change politics, and some based
decisively on an understanding that 21st
century global challenges need global
solutions. This brief analysis examines
some of the defining interdependencies
that help tell the story of the Durban
Climate Change Conference and the
launch of a new phase of climate change
negotiations. At the outset, expectations
were modest with many countries
feeling that “operationalizing” the
Cancun agreements was all that could
be achieved. Others wanted a balanced
and interdependent package within a
year that resolved the Kyoto Protocol
question, moved to a new legally-
binding treaty and operationalized the
Green Climate Fund.
In Durban early informal
consultations helped to clarify
the technicalities of the second
commitment period under the Kyoto
Protocol, especially the two-stage
approach that defers the definition
of quantified emission limitation and
reduction objectives (QELROs) and
their adoption as amendments to Annex
B to the eighth session of the Kyoto
Protocol Meeting of the Parties, proved
very useful in keeping prospective
participants on board.This core demand
drew legitimacy from Bali and helped
frame the Durban negotiations. Indeed
it is arguable that the EU drafted the
script for the central plot in Durban
by setting out their stall early in the
process and offering to do the heavy
lifting to save the Kyoto Protocol within
the context of a roadmap that put up a
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 UPSCPORTAL Current Affairs : http://upscportal.com/civilservices/current-affairs

challenge to other parties—developed

and developing.
The package agreed comprises four
main elements: a second commitment
period under the Kyoto Protocol, the
design of a Green Climate Fund and a
mandate to get all countries in 2015 to
sign a deal that would force them to cut
emissions no later than 2020, as well
as a workplan for 2012. Progress on
each element of the Durban Platform
unlocked other elements. For example
early in the second week, delegates
made headway on the Green Climate
Fund (GCF) as an operating entity of the
financial mechanism of the Convention;
a fund expected to mobilize US$100
billion a year by 2020. Reports of
early progress on the GCF—a priority
deliverable for the South African hosts
and the region, proved to be a major
contributor in raising the stakes. A
fragile sense of possibility emerged objection over agreements reached accommodation'. Hedegaard thanked
as Ministers arrived, although there behind closed doors. India had wanted India." Commenting, the Chinese
were increasing concerns about the a "legal outcome" as the third option, delegation said the conference had
diplomatic management of the process but Hedegaard said this would put produced "progressive and balanced
by the South African Presidency. countries' sincerity in doubt. That set outcome." Xie Zhenhua, head of the
India and China: Role off Natarajan, who roared: "We have Chinese delegation, told Xinhua that
redefined shown more flexibility than virtually the outcome is fully in accordance with
any other country. But equity is the the mandate of the UNFCCC, the Kyoto
The intensity of the negotiations was centrepiece, it cannot be shifted. This is Protocol and the Bali Roadmap.
highlighted by an impassioned speech by not about India. Xie Zhenhua, the vice The outcome, he added, is also in
India's Environment Minister Jayanthi minister of the National Development line with the two-track negotiation
Natarajan that capped the finale of the and Reform Commission, who headed process and the principle of common
UN climate summit which concluded the Chinese delegation, pointed out but differentiated responsibilities. "The
with a Durban Package, after she warned that the developing countries like conference made decisions on the
that India "will never be intimidated by India and China were "already doing arrangement of the second commitment
any threat or pressure". "Natarajan's much more than developed countries" period under the Kyoto Protocol, which
speech ensured that India's main against global warming. "U.S. and is the most concerned issue of developing
concern – the inclusion of the concept Chinese chief negotiators joined the countries," Xie noted. "Also, there is an
of equity in the fight against climate huddle too. More frenzied applause important progress on the finance issue,
change – became part of the package,". indicated an agreement had finally been the establishment of the Green Climate
The COP17 plenary session came to a reached. When the session reconvened, Fund," he added. However, Xie said, the
halt following row between Natarajan Natarajan announced that India had Durban conference did not accomplish
and European Union (EU) Climate agreed to a change of wording in the the completion of negotiations under
Commissioner Connie Hedegaard after third option 'in a spirit of flexibility and the Bali Roadmap. "The implementation

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 UPSCPORTAL Current Affairs : http://upscportal.com/civilservices/current-affairs
of the Cancun Agreements and the
Durban Outcome will not be achieved
in a short run," Xie said. "A heavy
load of work ahead on the post-2020
arrangement needs to be done in order
to enhance the implementation of the
Convention." Xie also cautioned that
some developed countries are reluctant
to reduce emissions and support
developing countries with financial
and technical aid. "The lack of political
will is a main element that hinders
cooperation on addressing climate
change in the international community,"
he said. "We expect political sincerity
from developed countries next year
in Qatar." Xie stressed that China will
make further contributions to the
global cause of tackling climate change
by taking stronger domestic actions
and continuing to play an active role in
relevant international talks.
Critically, in a deeply complex mix
of issues, with essential and constructed
linkages across the package there was
an onus on the Presidency to draw on
all available talent and experience to
line up the interdependent chain of
deliverables with clarity and dexterity.
Even as late as Thursday evening, anxiety
was rising and, in the wee hours of
Friday morning, a relatively closed high-
level Indaba of 26 parties representing
the major negotiating groups began to
hammer out the final terms of a deal.
This was also helped by a parallel set of
ministerial-led facilitations and bilateral
meetings to seek common ground.
It was deemed essential that the
EU assure China and India that they
would simply be expected to turn
their Cancun pledges into new legal
arrangements. As one observer noted,
the 2020 timeframe for any future
instrument under the Convention
was a source of some reassurance to
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BASIC countries that their Cancun
pledges and their timeframes would
be acceptable. The Presidency and the
EU were able to lock in the relatively
constructive role of countries such as
Brazil. While China seemed content to
allow India to do BASIC’s heavy lifting
and profile the “equity” issue, an issue—
alongside common but differentiated
responsibilities—that has helped define
the contest over contemporary rights
to development and the debate over
mitigation commitments.
Equity will come to the fore in the
negotiation of a new instrument as the
distribution and pace of mitigation
responsibilities increasingly mirrors a
debate on access to ecological space,
driven by an ethical demand from the
least developed and most vulnerable
that the world must overcome a form
of “atmospheric apartheid” wherein the
glittering prizes of development have—
to date—been heavily concentrated in
the hands of the few. It’s a demand that
also finds an echo in popular protests
in response to the crisis-prone global
financial system. An intriguing decision
recognizing loss and damage also points
to the future prominence of the equity
debate.
Although there was enough
political ground to secure a deal, it was
not until the final moments on the floor
of the plenary that the ultimate deal
fell into place. Described as a “defining
moment,” a last-minute “huddle” on
the plenary floor—perhaps the most
authentic of all the Indabas—in the
early hours of Sunday morning enabled
the EU to reach a compromise with
India on an option to describe the new
UNFCCC instrument in acceptable
legal terms. At the eleventh hour, they
agreed to launch a process to develop
a protocol, another legal instrument or
an “agreed outcome with legal force”
under the Convention applicable to all
Parties. It is an issue that could come
back to haunt the Europeans who might
well discover with the passage of time
just how big a compromise they made
to India, if other countries choose to
construct an “escape hatch” around the
legal terminology that falls short of a
new protocol.
Bye Bye Kyoto
It would be easy to look at the
greenhouse gas-constraining Kyoto
Protocol as a failure, particularly after
all the desultory wrangling that oversaw
its demise in all but name in Durban
on the weekend. But that might be
to see Kyoto through too much of a
Canadian-orchestrated prism. In 1997,
the industrialized world — save for Bill
Clinton's America — promised to roll
back climate-changing, GHG emissions
to pre-1990 levels by 2012, and these
countries have pretty much met that
goal. Indeed, according to detailed
study in September by the Netherlands
Environmental Assessment Agency
and the European Commission's Joint
Research Centre, the 37 main Kyoto
nations plus the U.S. (which has still
never ratified the treaty) have emitted 7.5
per cent less CO2 into the atmosphere
in 2010 than in 1990. What's more,
as a group, they are poised to meet
the collective Kyoto target of 5.2 per
cent less than 1990 by 2012, when the
agreement was to kick over to a more
stringent second stage, which is what
the Durban conference was supposed
to be about.
Today that second stage is something
of a mirage. Kyoto now looks like it
will live on essentially as a reporting
mechanism to keep the statistics
flowing and the 195 or so countries
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 UPSCPORTAL Current Affairs : http://upscportal.com/civilservices/current-affairs
under the UN umbrella still talking.
The goal now is to try to come up with
some sort of replacement "framework"
that may or may not bind all GHG-
emitting countries to the same degree
by somewhere around 2020. A handful
of Kyoto signatories — Japan, Russia
and, notably, Canada — stated pretty
explicitly at Durban that they won't
be bound by any second-stage Kyoto
commitments. (Not that the pre-2012
version carried any real penalties for
non-compliance). And they are already
setting their markers down for whatever
will come next. Essentially what Durban
did was change the discussion from
talking about specific commitments to
talking about timetables and, probably,
categories of polluters.
As climate change negotiators in
Durban marked the 14th birthday of the
Kyoto Protocol, the air in the conference
rooms was thick with a sense of both
the troubled history of climate politics
and a historic opportunity for inter-
generational change and redefined
responsibilities. Veteran negotiators
who invoked personal memories of their
formative days negotiating the original
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Convention and/or Protocol knew
that their audience reached far outside
the room to a virtual global society
wanting meaningful and immediate
action. Combined with the South
African Presidency’s commitment
to the Indaba format—designed to
encourage a true participatory and
open process of deliberation, the
transparency of Durban had a number
of unexpected consequences. Not
least was the effect of depriving some
ALBA negotiators of an opportunity to
repeat—with credibility—complaints
about exclusion. In contrast, Ministers,
negotiators and youth delegates found
themselves sometimes competing for
the same seat in the Indaba room.
South Africa certainly understood
the virtual social media huddle
could render swift judgments to the
champions of ambition and ridicule for
those who did not measure up to the
ambitions of the global environmental
community. At one point the President
convened a meeting at a critical
endpoint in the negotiations with,
apparently, little other purpose than
to ensure that global civil society’s
expectations were raised and primed
to maintain pressure on Ministers and
their negotiators. Dozens of traditional
and new media practitioners were on
hand to produce an iconic image of the
Greenpeace activist as he co-opted the
trappings of the UN for a well-executed
piece of agitprop and was led away by
UN guards to be expelled from the ICC.
This was a supreme example of the way
in which climate politics have been
transformed by the professional politics
of media spectacle—on this occasion
drawing on a deep tradition of South
African activism twinned now with a
new technological capacity that brings
climate politics to every screen.
A New ERA IN CLIMATE
NEGOTIATIONS
While 21st century global challenges
certainly need global solutions, it is
important not to forget that climate
change has very local impacts. One
such story loomed over the Conference.
UN Secretary-General Ban Ki-moon
recalled a tragic encounter with a child
in Kiribati who could not sleep soundly
for fear that he would be stolen away in
the night by a rising ocean. This story
captures the urgency of the dilemma
confronting negotiators—the call to
respond to the most vulnerable states
and their peoples facing the impacts of
climate change. The story also speaks
of an impatient generation of young
people who care passionately about
the issue because they will “live their
lives in the future.” This is a future of
networked interdependence that stands
in stark contrast with the geopolitics of
dependency that marked most of the
20th century and the era that gave rise to
the Berlin Mandate and Kyoto Protocol.
These are the voices calling across
generations for urgency and increased
ambition on targets to ensure that
temperatures will not rise more than
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1.5 to 2 degrees Celsius. And these are
the voices that recognize that the only
bridge that will span the current gap in
ambition is a global ethic of inclusion
and fairness built on foundations of
transparency and accountability. These
are the voices bearing witness in the
corridors, engaging with delegations,
disseminating every twist and turn
in the negotiations in the unforgiving
virtual public commons of the internet
where negotiators are held to account in
real time. These are the voices that have
judged the Durban Platform harshly.
Negotiators, however, who
embody the incremental expectations
of the institutions they serve, judge
themselves with more modest
benchmarks. From their point of view,
after the trauma of Copenhagen and
the struggle to rescue the multilateral
climate regime in Cancun, negotiators
in Durban turned a corner and not only
resuscitated the Kyoto Protocol but, in
doing so, leaped to a decision that will
see negotiations on a more inclusive
21st century climate regime with
something approaching symmetrical
reporting systems for country efforts on
mitigation. The variable but symmetrical
architecture of any new instrument will
be important for countries such as the
United States in convincing skeptical
domestic publics that a truly universal
effort is now in prospect. To paraphrase
one US negotiator commenting at the
conclusion of negotiations, the sales job
just went from impossible to very hard.
There was a strong sense that
elements of the Cancun-Durban
packages, guided by a need to fulfill
long overdue commitments from Bali,
restored sufficient momentum for new
negotiations that will need to be shaped
by moving beyond the traditional lines
dividing the developed and developing
world. This transcendence was first
signaled in Bali but only came into full
view after Copenhagen. A fluid new
set of coalitions is now taking shape,
defined by shifting interests. However,
those who look first to science to
measure success were the least
enthusiastic about the Durban Platform,
for they know that—once again—the
endemic incrementalism that has
haunted climate negotiations since
1992 continues to force compromise on
sufficient commitments on mitigation.
The prospects for something different
this time remain to be seen.
After the frustrations at the
Copenhagen conference and the
struggle to rescue the multilateral
climate regime in Cancun, negotiators
in Durban turned a corner and not only
resuscitated the Kyoto Protocol but, in
doing so, adopted a decision that will
lead to negotiations on a more inclusive
21st century climate regime. There
was a strong sense that elements of
the Durban package, guided by a need
to fulfill long overdue commitments
that go back to the Bali Roadmap,
restored sufficient momentum for
a new negotiation process, one that
will continue to witness a series of
differentiated interests across and within
the traditional lines of division between
developed and developing countries.
Many welcomed the adoption decisions
including on the Green Climate Fund,
and the Durban Platform, as well as the
process to launch an agreement with
legal force, while others continued to
insist on the urgent need to significantly
scale up the level of ambition to address
the gap between existing mitigation
pledges and the needed emission
reductions recommended by science.

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European Debt Crisis

A New Fear of Collapse
Dr. Sachchidanand

Fears of a sovereign debt crisis developed In early 2010 concern-

ing some countries in Europe including: Greece, Ireland, Spain,
and Portugal. This led to a crisis of confidence as well as the wid-
ening of bond yield spreads and risk insurance on credit default
swaps between these countries and other EU members, most im-
portantly Germany.

Concern about rising government deficits and debt levels across the globe together with a wave of down-
grading of European Government debt has created alarm on financial markets. The debt crisis has been
mostly centred on recent events in Greece, where there is concern about the rising cost of financing
government debt. On 2 May 2010, the Eurozone countries and the International Monetary Fund agreed to
a €110 billion loan for Greece, conditional on the implementation of harsh Greek austerity measures. On
9 May 2010, Europe's Finance Ministers approved a comprehensive rescue package worth almost a trillion
dollars aimed at ensuring financial stability across Europe.

Stimulates
The Greek economy was one of the fastest growing in the eurozone during the 2000s; from 2000 to 2007
it grew at an annual rate of 4.2% as foreign capital flooded the country. A strong economy and falling bond
yields allowed the government of Greece to run large structural deficits. According to an editorial pub-
lished by the Greek newspaper Kathimerini, large public deficits are one of the features that have marked
the Greek social model since the restoration of democracy in 1974.

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After the removal of the right leaning military
junta, the government wanted to bring
disenfrachised left leaning portions of the popula-
tion into the economic mainstream. In order to do
so, successive Greek governments have, among
other things, run large deficits to finance public
sector jobs, pensions, and other social benefits. Ini-
tially currency devaluation helped finance the bor-
rowing. After the introduction of the euro Greece
was initially able to borrow due the lower interest
rates government bonds could command. Since the
introduction of the Euro, debt to GDP has remained
above 100%. The global financial crisis that began
in 2008 had a particularly large effect on Greece.
Two of the country's largest industries are tourism
and shipping, and both were badly affected by the
downturn with revenues falling 15% in 2009.
To keep within the monetary union guidelines, the
government of Greece has been found to have con-
sistently and deliberately misreported the country's
official economic statistics. In the beginning of
2010, it was discovered that Greece had paid
Goldman Sachs and other banks hundreds of mil-
lions of dollars in fees since 2001 for arranging
transactions that hid the actual level of borrow-
ing. The purpose of these deals made by several
subsequent Greek governments was to enable them
to spend beyond their means, while hiding the
actual deficit from the EU overseers.
In 2009, the government of George Papandreou
revised its deficit from an estimated 6% (or 8% if a
special tax for building irregularities were not to
be applied) to 12.7%. In May 2010, the Greek gov-
ernment deficit was estimated to be 13.6% which
is one of the highest in the world relative to GDP.
Greek government debt was estimated at €216 bil-
lion in January 2010. Accumulated government
debt is forecast, according to some estimates, to
hit 120% of GDP in 2010. The Greek government
bond market is reliant on foreign investors, with
some estimates suggesting that up to 70% of Greek
government bonds are held externally. Estimated
tax evasion costs the Greek government over $20
billion per year.
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Despite the crisis, Greek government bond auc-
tions have all been over-subscribed in 2010 (as of
26 January). According to the Financial Times on
25 January 2010, "Investors placed about €20bn
($28bn, £17bn) in orders for the five-year, fixed-
rate bond, four times more than the (Greek) gov-
ernment had reckoned on." In March, again ac-
cording to the Financial Times, "Athens sold €5bn
(£4.5bn) in 10-year bonds and received orders for
three times that amount."
Downgrading of Debt
On 27 April 2010, the Greek debt rating was de-
creased to 'junk' status by Standard & Poor's amidst
fears of default by the Greek government. Yields
on Greek government two-year bonds rose to
15.3% following the downgrading. Some analysts
question Greece's ability to refinance its debt. Stan-
dard & Poor's estimates that in the event of de-
fault investors would lose 30–50% of their money.
Stock markets worldwide declined in response to
this announcement.
Following downgradings by Fitch, Moody's and
S&P, Greek bond yields rose in 2010, both in ab-
solute terms and relative to German government
bonds. Yields have risen, particularly in the wake
of successive ratings downgrading. According to
the Wall Street Journal "with only a handful of
bonds changing hands, the meaning of the bond
move isn't so clear." As of 6 May 2010, Greek 10-
year bonds were trading at an effective yield of
11.31%.
On 3 May 2010, the European Central Bank sus-
pended its minimum threshold for Greek debt "un-
til further notice", meaning the bonds will remain
eligible as collateral even with junk status. The
decision will guarantee Greek banks' access to
cheap central bank funding, and analysts said it
should also help increase Greek bonds' attractive-
ness to investors. Following the introduction of
these measures the yield on Greek 10-year bonds
fell to 8.5%, 550 basis points above German yields,
down from 800 basis points earlier.
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Austerity and Loan
Agreement
On 5 March 2010, the Greek parliament passed
the Economy Protection Bill, expected to save €4.8
billion through a number of measures including
public sector wage reductions. Passage of the bill
occurred amid widespread protests against govern-
ment austerity measures in the Greek capital, Ath-
ens. On 23 April 2010, the Greek government re-
quested that the EU/IMF bailout package be acti-
vated. The IMF has said it was "prepared to move
expeditiously on this request". Greece needs some
of the money before 19 May, when it faces a debt
roll over of $11.3bn. On 2 May 2010, a loan agree-
ment was reached between Greece, the other
eurozone countries, and the International Mon-
etary Fund. The deal consists of an immediate €45
billion in low interest loans to be provided in 2010,
with more funds available later. A total of €100
billion has been agreed. The interest for the
Eurozone loans is 5%, considered to be a rather
high level for any bailout loan. The government of
Greece agreed to impose a fourth and final round
of austerity measures.
These include:
Ø Public Sector limit introduced of €1,000 to bi-
annual bonus, abolished entirely for those earning
over €3,000 a month.
Ø Cuts of 8% on public sector allowances and
3% pay cut for DEKO (public sector utilities) pay
cheques.
Ø Freeze on increases in public sector wages for
three years.
Ø Limit of €800 to 13th and 14th month pension
installment. Abolished for those pensioners receiv-
ing over €2,500 a month.
Ø Return of special tax (LAFKA) on high pen-
sions.
Ø Changes planned to the laws governing lay-
offs and overtime pay.
Ø Extraordinary taxes on company profits.
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Ø Increases in VAT to 23%, 11% and 5.5%.
Ø 10% rise in taxes on alcohol, cigarettes, and
fuels.
Ø 10% increase in luxury taxes.
Ø Equalisation of men's and women's pension
age limits.
Ø General pension age does not change but a
mechanism is introduced to scale them to life ex-
pectations changes.
Ø Creation of a financial stability fund.
Ø Average retirement age for public sector work-
ers increased from 61 to 65.
Ø Public-owned companies to diminish from
6,000 to 2,000.
On 5 May 2010, a national strike was held in op-
position to the planned spending cuts and tax in-
creases. Protest on that date was widespread and
turned violent in Athens, killing three people and
injuring dozens.
According to research published on 5 May 2010,
by Citibank, the EMU loans will be pari passu and
not senior like those of the IMF. In fact the se-
niority of the IMF loans themselves has no legal
basis but is respected nonetheless. The amount of
the loans will cover Greece's funding needs for the
next three years (estimated at 30bn for the rest of
2010 and 40bn each for 2011 and 2012). Citibank
finds the fiscal tightening "unexpectedly tough".
It will amount to a total of €30 billion (i.e. 12.5%
of 2009 Greek GDP) and consist of 5 pp of GDP
tightening in 2010 and a further 4 pp tightening
in 2011.
Danger of Default
Without a bailout agreement, there was a possi-
bility that Greece would have been forced to de-
fault on some of its debt. The premiums on Greek
debt had risen to a level that reflected a high chance
of a default or restructuring. One analyst gave a 80
to 90% chance of a default or restructuring. Mar-
tin Feldstein called a Greek default "inevitable." A
default would most likely have taken the form of a
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restructuring where Greece would pay creditors
only a portion of what they were owed, perhaps
50 or 25 percent. This would effectively remove
Greece from the euro, as it would no longer have
collateral with the European Central Bank. It
would also destabilise the Euro Interbank Offered
Rate, which is backed by government securities.
Since Greece is on the euro, it cannot print its own
currency. This prevents it from inflating away a
portion of its obligations or otherwise stimulating
its economy with monetary policy.
For example, the U.S. Federal Reserve expanded
its balance sheet by over $1.3 trillion since the glo-
bal financial crisis began, essentially printing new
money and injecting it into the system by purchas-
ing outstanding debt.
The overall effect of Greece being forced off the
euro, would itself have been small for the other
European economies. Greece represents only 2%
of the eurozone economy. The more severe dan-
ger is that a default by Greece will cause investors
to lose faith in other Eurozone countries. This con-
cern is focused on Portugal and Ireland, all of whom
have high debt and deficit issues. Italy also has a
high debt, but its budget position is better than
the European average, and it is not considered
amongst the countries most at risk.
Recent rumours raised by speculators about a Span-
ish bail-out were dismissed by Spanish President
Mr. Zapatero as "complete insanity" and "intoler-
able". Spain has a comparatively low debt amongst
advanced economies, at only 53% of GDP in 2010,
more than 20 points less than Germany, France or
the US, and more than 60 points less than Italy,
Ireland or Greece, and it doesn't face a risk of de-
fault. Spain and Italy are far larger and more cen-
tral economies than Greece, both countries have
most of their debt controlled internally, and are in
a better fiscal situation than Greece and Portugal,
making a default unlikely unless the situation gets
far more severe.
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Objections to Proposed
Policies
The crisis is seen as a justification for imposing fis-
cal austerity on Greece in exchange for European
funding which would lower borrowing costs for
the Greek government. The negative impact of
tighter fiscal policy could offset the positive im-
pact of lower borrowing costs and social disrup-
tion could have a significantly negative impact on
investment and growth in the longer term. Joseph
Stiglitz has also criticised the EU for being too slow
to help Greece, insufficiently supportive of the new
government, lacking the will power to set up suf-
ficient "solidarity and stabilisation framework" to
support countries experiencing economic difficulty,
and too deferential to bond rating agencies.
An alternative to the bailout agreement, would
have been Greece leaving the Eurozone. Wilhelm
Hankel, professor emeritus of economics at the
University of Frankfurt am Main suggested in an
article published in the Financial Times that the
preferred solution to the Greek bond 'crisis' is a
Greek exit from the euro followed by a devalua-
tion of the currency. Fiscal austerity or a euro exit
is the alternative to accepting differentiated gov-
ernment bond yields within the Euro Area. If
Greece remains in the euro while accepting higher
bond yields, reflecting its high government defi-
cit, then high interest rates would dampen demand,
raise savings and slow the economy. An improved
trade performance and less reliance on foreign capi-
tal would result.
EU Emergency Measures
On 9 May 2010, Europe's Finance Ministers ap-
proved, in an emergency meeting, a rescue pack-
age that could provide 750 billion Euros for crisis
aid aimed at ensuring financial stability across Eu-
rope.
The package announced has three components:
The first part expands a €60 billion (US$70 billion)
Eurogroup's stabilisation fund (European Financial
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Stabilization mechanism). Countries will be able
to draw on that fund but activation will be subject
to strict conditionalities. It is intended to help any
member of the eurozone that is struggling to fi-
nance its debts because of high interest rates de-
manded by the financial markets. All EU coun-
tries contribute to this fund on a pro-rata basis,
whether they are eurozone countries or not.
The second part worth €440 billion (US$570 bil-
lion) consists of government-backed loans to im-
prove market confidence. The loans will be issued
by a Special purpose vehicle (SPV) managed by the
Commission and backed by the explicit guarantee
of the EMU member states and the implicit guar-
antee of the European Central Bank. All eurozone
economies will participate in funding this mecha-
nism, while other EU members can choose
whether to participate.
Sweden and Poland have agreed to participate,
while the UK's refusal prompted strong criticism
from the French government, along with a threat
that eurozone countries would not support the
pound in the case of speculative attacks. Denmark
will not contribute despite its participation in the
European Exchange Rate Mechanism.
Finally the third part consists of €250 billion
(US$284 billion), half the size of the EU participa-
tion, with additional contribution from the Inter-
national Monetary Fund.
The agreement also allowed the European Central
Bank to start buying government debt which is
expected to reduce bond yields. (Greek bond yields
fell from over 10% to just over 5%; Asian bonds
also fell with the EU bailout.)
The ECB has also announced a series measures
aimed at reducing volatility in the financial mar-
kets and at improving liquidity:
First, it began open market operations buying gov-
ernment and private debt securities.
Second, it announced two 3-month and one 6-
month full allotment of Long Term Refinancing
Operations (LTRO's).
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Thirdly, it reactivated the dollar swap lines with
Federal Reserve support.
Subsequently, the member banks of the European
System of Central Banks started buying govern-
ment debt.
Stocks worldwide surged after this announcement
as fears that the Greek debt crisis would spread
subsided, some rose the most in a year or more.
The Euro made its biggest gain in 18 months, be-
fore falling to a new four-year low a week later.
Commodity prices also rose following the an-
nouncement. The dollar Libor held at a nine-month
high. Default swaps also fell. The VIX closed down
a record almost 30%, after a record weekly rise
the preceding week that prompted the bailout.
Despite the moves by the EU, the European Com-
missioner for Economic and Financial Affairs, Olli
Rehn, called for "absolutely necessary" deficit cuts
by the heavily indebted countries of Spain and
Portugal. Private sector bankers and economists
also warned that the threat from a double dip re-
cession has not faded. Stephen Roach, chairman
of Morgan Stanley Asia, warned about this threat
saying "When you have a vulnerable post-crisis
economic recovery and crises reverberating in the
aftermath of that, you have some very serious risks
to the global business cycle.
" Nouriel Roubini said the new credit available
to the heavily indebted countries did not equate
to an immediate revival of economic fortunes:
"While money is available now on the table, all
this money is conditional on all these countries
doing fiscal adjustment and structural reform."
After initially falling to a four-year low early in
the week following the announcement of the EU
guarantee packages, the euro rose as hedge funds
and other short-term traders unwound short posi-
tions and carry trades in the currency.
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Long-Term Solutions Greece can no longer devalue its way out of eco-
nomic difficulties it will have to more tightly con-
trol spending than it has since the inception of the
European Union leaders have made two major pro-
Third Hellenic Republic.
posals for ensuring fiscal stability in the long term.
The first proposal is the creation of a common fund
Regardless of the corrective measures chosen to
responsible for bailing out, with strict conditions,
solve the current predicament, as long as cross bor-
an EU member country. This reactive tool is some-
der capital flows remain unregulated in the Euro
times dubbed as the European Monetary Fund by
Area, asset bubbles and current account imbalances
the media. The second is a single authority respon-
are likely to continue. For example, a country that
sible for tax policy oversight and government
runs a large current account or trade deficit (i.e., it
spending coordination of EU member countries.
imports more than it exports) must also be a net
This preventive tool is dubbed the European Trea-
importer of capital; this is a mathematical identity
sury. The monetary fund would be supported by
called the balance of payments. In other words, a
EU member governments, and the treasury would
country that imports more than it exports must
be supported by the European Commission.
also borrow to pay for those imports. Conversely,
Germany's large trade surplus (net export position)
However, strong European Commission oversight
means that it must also be a net exporter of capi-
in the fields of taxation and budgetary policy and
tal, lending money to other countries to allow them
the enforcement mechanisms that go with it have
to buy German goods. The 2009 trade deficits for
been described as infringements on the sovereignty
Spain, Greece, and Portugal were estimated to be
of eurozone member states and are opposed by key
$69.5 billion, $34.4B and $18.6B, respectively
EU nations such as France and Italy, which could
($122.5B total), while Germany's trade surplus was
jeopardise the establishment of a European Trea-
$109.7B. A similar imbalance exists in the U.S.,
sury.
which runs a large trade deficit (net import posi-
tion) and therefore is a net borrower of capital from
Some think-tanks such as the CEE Council have
abroad. Ben Bernanke warned of the risks of such
argued that the predicament some EU countries
imbalances in 2005, arguing that a "savings glut"
find themselves in is the result of a decade of debt-
in one country with a trade surplus can drive capi-
fueled Keynesian policies pursued by local policy
tal into other countries with trade deficits, artifi-
makers and complacent EU central bankers, and
cially lowering interest rates and creating asset
have recommended the imposition of a battery of
bubbles.
corrective policies to control public debt. Some
senior German policy makers went as far as to say
A country with a large trade surplus would gener-
that emergency bailouts should bring harsh pen-
ally see the value of its currency appreciate rela-
alties to EU aid recipients such as Greece.
tive to other currencies, which would reduce the
imbalance as the relative price of its exports in-
Others argue that an abrupt return to "non-
creases. This currency appreciation occurs as the
Keynesian" financial policies is not a viable solu-
importing country sells its currency to buy the
tion and predict the deflationary policies now be-
exporting country's currency used to purchase the
ing imposed on countries such as Greece and Spain
goods. However, many of the countries involved
might prolong and deepen their recessions. The
in the crisis are on the Euro, so this is not an avail-
Economist has suggested that ultimately the Greek
able solution at present.
"social contract," which involves "buying" social
Alternatively, trade imbalances might be addressed
peace through public sector jobs, pensions, and
by changing consumption and savings habits. For
other social benefits, will have to be changed to
example, if a country's citizens saved more instead
one predicated more on price stability and gov-
of consuming imports, this would reduce its trade
ernment restraint if the euro is to survive. As
deficit.

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Likewise, reducing budget deficits is another

method of raising a country's level of saving. Capi-
tal controls that restrict or penalize the flow of
capital across borders is another method that can
reduce trade imbalances. Interest rates can also be
raised to encourage domestic saving, although this
benefit is offset by slowing down an economy and
increasing government interest payments.

The suggestion has been made that long term sta-

bility in the eurozone requires a common fiscal
policy rather than controls on portfolio investment.
In exchange for cheaper funding from the EU,
Greece and other countries, in addition to having
already lost control over monetary policy and for-
eign exchange policy since the euro came into be-
ing, would therefore also lose control over domes-
tic fiscal policy.

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 UPSCPORTAL Current Affairs : http://upscportal.com/civilservices/current-affairs
FDI in Retail
To be or Not To be..
The Union cabinet on 24 November
2011 approved 51 per cent foreign
direct investment (FDI) in multi-
brand retail. The Cabinet also decided
to raise the cap on foreign investment
in single-brand retailing to 100 per
cent from 51 per cent. An estimated
Rs 30-lakh-crore retail sector was
thus opened to foreign investors by
clearing a bill that allows 51 per cent
investment in multi-brand retail.The
decision being perceived as game-
changer for the estimated USD 590
billion (Rs 29.50 lakh crore) retail
market was taken at the meeting of
the Cabinet presided over by Prime
Minister Manmohan Singh.
India currently allows 51 percent for-
eign investment in single-brand retail-
ers and 100 percent for wholesale op-
erations but no FDI in multi-brand
retail.
The major provisions for FDI invest-
ment include that the minimum in-
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vestment will have to be $100 mil-
lion. Retail stores will only be allowed
in cities with more than one million
people. Also it will be mandatory for
retailers to source a minimum 30 per
cent of the value of manufactured
goods, barring food products, from
small and medium enterprises. Invest-
ment up to 50 per cent will have to
be in storage and back-end infrastruc-
ture. India being a signatory to World
Trade Organisation’s General Agree-
ment on Trade in Services, which in-
clude wholesale and retailing ser-
vices, had to open up the retail trade
sector to foreign investment. There
were initial reservations towards
opening up of retail sector arising
from fear of job losses, procurement
from international market, competi-
tion and loss of entrepreneurial op-
portunities. FDI in cash and carry or
wholesale trade, was allowed way
back in 1997 during the United Front
Government. Foreign investment of
up to 51 per cent in single brand re-
tailing came to India in January 2006.
The Union government further as-
serted that 30 per cent sourcing un-
der FDI in multi-brand retail has been
made mandatory from Indian MSEs
only. The government highlighted
that the 30 per cent obligation before
the global players is limited to India.
The government’s explanation came
amidst protests from the opposition
and the micro and small enterprises
(MSEs).According to government’s
previous stand, the overseas players
have to do 30 per cent of their sourc-
ing from MSEs which, however, can
be done from anywhere in the world
and is not India-specific. The only
condition placed was that these
MSEs must not have more than $1
million [Rs.5 crore] investment in
plant and machinery.
In 2004, The High Court of Delhi
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 UPSCPORTAL Current Affairs : http://upscportal.com/civilservices/current-affairs
defined the term ‘retail’ as a sale for
final consumption in contrast to a
sale for further sale or processing (i.e.
wholesale), A sale to the ultimate
consumer. Thus, retailing can be said
to be the interface between the pro-
ducer and the individual consumer
buying for personal consumption.
This excludes direct interface be-
tween the manufacturer and institu-
tional buyers such as the government
and other bulk customers Retailing is
the last link that connects the indi-
vidual consumer with the manufac-
turing and distribution chain. A re-
tailer is involved in the act of selling
goods to the individual consumer at
a margin of profit.
The retail industry is mainly divided
into:- 1) Organised & 2) Unorganised
Retailing Organised retailing refers to
trading activities undertaken by li-
censed retailers, that is, those who
are registered for sales tax, income tax,
etc. These include the corporate-
backed hyper markets and retail
chains, and also the privately owned
large retail businesses. Unorganised
retailing, on the other hand, refers to
the traditional formats of low-cost
retailing, for example, the local kirana
shops, owner manned general stores,
paan/beedi shops, convenience
stores, hand cart and pavement ven-
dors, etc. The Indian retail sector is
highly fragmented with 97 per cent
of its business being run by the un-
organized retailers. The organized re-
tail however is at a very nascent stage.
The sector is the largest source of
employment after agriculture, and has
deep penetration into rural India gen-
erating more than 10 per cent of
India’s GDP.
For those brands which adopt the
franchising route as a matter of
policy, the current FDI Policy will not
make any difference. They would
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have preferred that the Government
liberalize rules for maximizing their
royalty and franchise fees. They must
still rely on innovative structuring of
franchise arrangements to maximize
their returns. Consumer durable ma-
jors such as LG and Samsung, which
have exclusive franchisee owned
stores, are unlikely to shift from the
preferred route right away. For those
companies which choose to adopt the
route of 51% partnership, they must
tie up with a local partner. The key is
finding a partner which is reliable and
who can also teach a trick or two
about the domestic market and the
Indian consumer.
Positive Aspects
FDI can be a powerful catalyst to spur
competition in the retail industry, due
to the current scenario of low com-
petition and poor productivity. The
policy of single-brand retail was
adopted to allow Indian consumers
access to foreign brands. Since Indi-
ans spend a lot of money shopping
abroad, this policy enables them to
spend the same money on the same
goods in India. FDI in single-brand
retailing was permitted in 2006, up
to 51 per cent of ownership. Between
then and May 2010, a total of 94 pro-
posals have been received. Of these,
57 proposals have been approved.
An FDI inflow of US$196.46 million
under the category of single brand
retailing was received between April
2006 and September 2010, compris-
ing 0.16 per cent of the total FDI in-
flows during the period. Retail stocks
rose by as much as 5%. Shares of
Pantaloon Retail (India) Ltd ended
4.84% up at Rs 441 on the Bombay
Stock Exchange. Shares of Shopper’s
Stop Ltd rose 2.02% and Trent Ltd,
3.19%. The exchange’s key index rose
173.04 points, or 0.99%, to
17,614.48. But this is very less as
compared to what it would have been
had FDI upto 100% been allowed in
India for single brand. The policy of
allowing 100% FDI in single brand
retail can benefit both the foreign re-
tailer and the Indian partner – foreign
players get local market knowledge,
while Indian companies can access
global best management practices,
designs and technological knowhow.
By partially opening this sector, the
government was able to reduce the
pressure from its trading partners in
bilateral/ multilateral negotiations
and could demonstrate India’s inten-
tions in liberalising this sector in a
phased manner.
Permitting foreign investment in
food-based retailing is likely to ensure
adequate flow of capital into the
country & its productive use, in a
manner likely to promote the welfare
of all sections of society, particularly
farmers and consumers. It would also
help bring about improvements in
farmer income & agricultural growth
and assist in lowering consumer prices
inflation. Apart from this, by allow-
ing FDI in retail trade, India will sig-
nificantly flourish in terms of quality
standards and consumer expectations,
since the inflow of FDI in retail sec-
tor is bound to pull up the quality
standards and cost-competitiveness
of Indian producers in all the seg-
ments. It is therefore obvious that we
should not only permit but encour-
age FDI in retail trade.Lastly, it is to
be noted that the Indian Council of
Research in International Economic
Relations (ICRIER), a premier eco-
nomic think tank of the country,
which was appointed to look into the
impact of BIG capital in the retail
sector, has projected the worth of
 UPSCPORTAL Current Affairs : http://upscportal.com/civilservices/current-affairs

Indian retail sector to reach $496 bil- tors. Antagonists of FDI in retail sec- 1.2 crore shops employing over 4
lion by 2011-12 and ICRIER has also tor oppose the same on various crore people; 95% of these are small
come to conclusion that investment grounds, like, that the entry of large shops run by self-employed people.
of ‘big’ money (large corporates and global retailers such as Wal-Mart Global retail giants will resort to
FDI) in the retail sector would in the would kill local shops and millions of predatory pricing to create mo-
long run not harm interests of small, jobs, since the unorganized retail sec- nopoly/oligopoly. This can result in
traditional, retailers. In light of the tor employs an enormous percentage essentials, including food supplies,
above, it can be safely concluded that of Indian population after the agri- being controlled by foreign organiza-
allowing healthy FDI in the retail sec- culture sector; secondly that the glo- tions. Jobs in the manufacturing sec-
tor would not only lead to a substan- bal retailers would conspire and ex- tor will be lost because structured
tial surge in the country’s GDP and ercise monopolistic power to raise international retail makes purchases
overall economic development, but prices and monopolistic (big buying) internationally and not from domes-
would inter alia also help in integrat- power to reduce the prices received tic sources. This has been the experi-
ing the Indian retail market with that by the suppliers; thirdly, it would lead ence of most countries which have
of the global retail market in addi- to asymmetrical growth in cities, allowed FDI in retail. Comparison
tion to providing not just employ- causing discontent and social tension between India and China is mis-
ment but a better paying employment, elsewhere. Hence, both the consum- placed. China is predominantly a
which the unorganized sector (kirana ers and the suppliers would lose, manufacturing economy. It's the larg-
and other small time retailing shops) while the profit margins of such re- est supplier to Wal-Mart and other
have undoubtedly failed to provide tail chains would go up. international majors. It obviously can-
to the masses employed in them. Argument that only foreign players not say no to these chains opening
can create the supply chain for farm stores in China when it is a global
Concerns produce is bogus. International retail
players have no role in building roads
supplier to them. India in contrast will
lose both manufacturing and services
or generating power. They are only jobs.
required to create storage facilities
and cold chains. This could be done
by governments in India. Move will
Conclusion
lead to large-scale job losses. Inter-
national experience shows supermar- Conclusively we can say that FDI in
retail has the both positive as well as
It is feared that, it would lead to un- kets invariably displace small retail-
negative aspects of it ,but what we
fair competition and ultimately result ers. Small retail has virtually been
should consider before jumping on
in large-scale exit of domestic retail- wiped out in developed countries like
any conclusion that fears of small
ers, especially the small family man- the US and in Europe. South East
shopkeepers getting displaced are
aged outlets, leading to large scale dis- Asian countries had to impose strin-
vastly exaggerated. When domestic
placement of persons employed in gent zoning and licensing regulations
majors were allowed to invest in re-
the retail sector. Further, as the manu- to restrict growth of supermarkets
tail, both supermarket chains and
facturing sector has not been grow- after small retailers were getting dis-
neighbourhood pop-and-mom stores
ing fast enough, the persons displaced placed. Fragmented markets give
coexisted. If anything, the entry of
from the retail sector would not be larger options to consumers. Consoli-
retail big boys is likely to hot up com-
absorbed there. Another concern is dated markets make the consumer
petition, giving consumers a better
that the Indian retail sector, particu- captive. Allowing foreign players with
deal, both in prices and choices. Mega
larly organized retail, is still under- deep pockets leads to consolidation.
retail chains need to keep price points
developed and in a nascent stage and International retail does not create
low and attractive - that's the USP
that, therefore, it is important that additional markets, it merely dis-
of their business. This is done by
the domestic retail sector is allowed places existing markets. India has the
smart procurement and inventory
to grow and consolidate first, before highest shopping density in the world
management: Good practices from
opening this sector to foreign inves- with 11 shops per 1,000 people. It has

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 UPSCPORTAL Current Affairs : http://upscportal.com/civilservices/current-affairs

which Indian retail can also learn. The argument that farmers will suffer once global retail has developed a virtual
monopoly is also weak. To begin with, it's very unlikely that global retail will ever become monopolies. Stores like
Wal-Mart or Tesco are by definition few, on the outskirts of cities (to keep real estate costs low), and can't intrude
into the territory of local kiranas. So, they can not eat up their share of pie. Secondly, it can't be anyone's case that
farmers are getting a good deal right now. The fact is that farmers barely subsist while middlemen take the cream.
Let's not get dreamy about this unequal relationship.

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